More than 50 million SOL tokens have been snapped up around the $73.75 mark, creating the biggest on-chain accumulation area for Solana. This surge of buying stands in contrast with the recent price slump, signaling strong conviction among investors who are steadily building positions rather than cashing out.
Concentrated Buying Defies Recent Weakness
Usually, hefty accumulation zones mean investors prefer holding onto their tokens instead of selling, which shrinks the circulating supply and can tighten the market. The $73.75 level has outpaced every other price point in terms of volume absorbed, highlighting its significance for Solana holders. Market pros stayed bullish even as Solana’s price retreated towards critical support levels.
Binance’s Top Trader Long/Short Ratio shows 75.05% of accounts remain long on SOL, with shorts at just under 25%. This 3-to-1 ratio reveals that seasoned traders expect a bounce back instead of a prolonged decline. However, such crowded long positions mean any swift price drop could trigger aggressive liquidations, accelerating the downturn.
Technical Picture Shows Caution
While derivatives traders show optimism, Solana’s price chart paints a more hesitant picture. The token sank into a descending channel after failing to hold above $82.56. An emerging cup-and-handle setup is still intact, but the handle’s formation below key resistance suggests buying pressure is waning.
Rebounds have lacked strength, consistently stalling under the falling trendline. The Relative Strength Index (RSI) has dropped to 43.19, below its signal line at 48.23, indicating diminished momentum. Immediate resistance is at $78.45, with support near $70.10 and a more critical floor at $62.07. Breaking out above the descending channel could reignite bulls aiming for $82.56, but failure may prolong the downtrend.
This material is informational and does not constitute financial advice.
