Solana is extending its uptrend that began in early August, pushing the altcoin to a fresh seven-month high.
The rally has brought SOL to the critical $250 mark, a key psychological level that could determine the next phase of its price action.
Solana Holders Move To Sell
The Liveliness indicator has recorded a sharp uptick since the start of the month, signaling that long-term holders (LTHs) are actively moving their coins. This activity often points to profit-taking, as holders look to capitalize on SOL’s seven-month high.
Historically, moments of profit-taking by influential cohorts create significant headwinds for Solana. While broader momentum remains bullish, persistent selling pressure from LTHs could undermine the rally. Their movements have the potential to slow momentum and trigger a rejection around $250.
Solana’s LTH Net Unrealized Profit and Loss (NUPL) provides a clearer view of the trend. Although holders are selling, the metric suggests they have not yet reached their peak profit zone. Historically, NUPL above 0.6 tends to trigger heavier liquidation.
Given that the current level is still below this threshold, Solana retains room for additional gains. This implies that while profit-taking is happening, the unrealized profits have not yet escalated to levels that typically cause sharp reversals in SOL’s price.
SOL Price Is Pushing Upwards
Solana is trading at $246, edging closer to the $250 resistance level. While intra-day spikes have briefly pushed SOL above $250, the altcoin needs strong support to establish a sustained breakout beyond this mark.
If selling from LTHs accelerates, SOL could face an early reversal. A drop below $246 may lead to losses toward $232. This would further downside risk extending to $214 should bearish pressure intensify.
Alternatively, if LTH selling remains moderate until the saturation point, Solana could extend its rally. Breaking through $250 with conviction may set SOL on a path toward $260, supported by strong market sentiment and investor confidence.
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
