Solana's Price Faces 27% Resistance, Investors Take Profits

Solana's price has been facing significant resistance levels, with recent on-chain metrics indicating a strategic redistribution of tokens and a dominance of long liquidation. This suggests that investors are engaging in profit-taking behavior and preparing for potential market consolidation. According to Glassnode, approximately 27 million SOL tokens were last exchanged within the critical price range of $144 to $156, highlighting a significant resistance area. Additionally, another 26.6 million SOL tokens were transacted between $132 and $144, indicating a densely packed supply cluster that increases selling pressure in this price band.

The concentration of investor holdings around these price levels leads to increasingly predictable market responses. When SOL revisits these ranges, intensified selling pressure is likely to emerge, as observed during prior trading periods. Evidence from the period of 19-31 March indicates signs of profit-taking and reaccumulation in Solana’s supply data. Glassnode recorded a 0.3% increase in tokens transacted at $144.54 while holdings at $147.49 dropped by 0.1%, signaling diminished confidence at prior highs. Investors are also showing tendencies to gravitate towards lower price zones, reinforcing support between $123 and $144.

Accumulation metrics indicate a notable rise in holdings near $112, which have surged from 4 million to 9.7 million SOL since January, showcasing a calculated approach to redefining support and resistance thresholds. This prevailing trend underscores a cautious “break-even” mentality among holders who secured positions between $144 and $147, raising concerns about potential intensified selling unless buyer support intensifies to mitigate this pressure.

A significant support zone has emerged between $94 and $100, where over 21 million SOL—approximately 3.5% of the total supply—last transacted. This defined range presents a buffer against future price declines. Funding rate trends illustrate a corresponding evolution in market sentiment, marking pivotal shifts in trader expectations. Between 18 to 24 March, SOL prices surged from $120 to over $140, with funding rates peaking at +0.0035 as long positions gained traction. However, the decline commencing on 25 March to $125 coincided with funding rates dropping to -0.0047, a clear sign of a bearish turn in trader outlook.

This downturn illustrates a reduction in long exposure and a burgeoning sense of caution among traders. By the end of March, the stabilization of funding rates near neutral values hinted at indecision and a period of reduced volatility—an indicator that the market is consolidating as it processes prior gains and strategizes for forthcoming movements. Liquidation patterns during this timeframe lend additional credence to this cautious market perspective. Data collected from 24 March to 2 April shows that out of $7.6 million in liquidations, long positions accounted for $5.6 million. A notable example occurred on 28 March when SOL’s price dropped sharply from $137 to $125, triggering liquidations worth $3 million. The overwhelming majority of liquidated positions—73.68%—were long, indicating excessive bullish leverage in the market.

This unwinding led to increased short-term volatility and exacerbated the price decline. Additionally, exchange data demonstrated that liquidation activity was relatively balanced across platforms, signaling a widespread market response rather than isolated incidents. Furthermore, Solana’s daily active addresses, which peaked at 6.5 million on 20 January, have plummeted by 46%, settling at approximately 3.5 million by 2 April. Despite significant fluctuations, daily activity has remained stable above 2.5 million since March—indicating a consistent but less actively engaged user base. The earlier spikes in January and March appear temporary, likely attributed to specific campaigns or launches, reflecting that Solana’s growth trajectory is highly event-driven, albeit supported by a dedicated core community.

Analyzing the comprehensive data reveals several discernible trends. For instance, token flows indicate an active redistribution from the $147 range into lower price bands, effectively easing overhead resistance and reinforcing support below $144. Presently, it appears that Solana will continue to oscillate below the $130 level, engaging in consolidation as the market awaits a decisive triggering event that could establish clearer momentum.