Solana’s market is currently navigating a complex period, marked by significant long-term holder distribution while simultaneously demonstrating robust absorption from buyers. This dynamic has trapped the asset in a tight consolidation range, creating a fascinating standoff between persistent supply and unwavering demand.
Long-Term Selling Meets Market Absorption
A prominent Solana staker recently initiated a gradual exit, unstaking over 98,000 SOL after nearly two years. This move, which locks in a realized loss exceeding $6.6 million from earlier cycle highs, is being executed via a Dollar-Cost Averaging (DCA) strategy. This methodical distribution approach prevents abrupt market reactions but introduces a steady overhead supply pressure. Despite this sustained selling from a large holder, the market has effectively absorbed the supply, preventing a significant price breakdown and highlighting a resilient underlying demand structure.
Price Consolidation and Indicator Insights
Solana's price continues to trade within a clearly defined range, with buyers consistently defending the $120–$125 demand zone, while upside attempts repeatedly fail near the $146–$150 resistance. The daily Relative Strength Index (RSI) reflects this compression, softening from recent highs but remaining above the 30 threshold, indicating a lack of seller dominance. Crucially, the Spot Taker CVD over a 90-day window shows buyer dominance, confirming that aggressive market participants are actively meeting supply rather than chasing price higher. This absorption mechanism stabilizes the price, yet it prevents immediate directional expansion.
Strong Trader Conviction Amidst Balance
Despite the lack of price expansion, top traders on Binance remain overwhelmingly bullish on Solana. The Long/Short Ratio stands at 4.22, with over 80% of top accounts holding long positions, signaling strong conviction. However, this bullish sentiment has yet to translate into upward momentum, as the price remains trapped within its consolidation box. Solana is therefore experiencing a crucial moment where structural support and strong buyer confidence are absorbing long-term selling, setting the stage for a potential breakout once this prolonged distribution phase fully clears.
