Solana traders panic as SOL falls below $165 – But there’s more to the story

Key Takeaways

Long-term holders are doubling down on Solana despite the recent price drop. Data suggests that SOL may be close to a local bottom.

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Solana [SOL] might be losing altitude on the charts, but long-term holders clearly didn’t get the memo. Instead of panic-selling, they’ve been stacking coins with great confidence.

And with most recent sellers locking in losses, the worst may already be behind us.

Long-term holders load up as price drops

Solana’s recent price dip hasn’t spooked its long-term holders.

On the contrary, Glassnode data revealed a 102% surge in Hodler Net Position Change since the 30th of July, a sign of confidence among seasoned investors.

This metric reflects the 30-day net change in holdings by long-term participants.

Naturally, such spikes tend to signal accumulation. Despite falling prices, more coins are moving into cold storage, hinting at strategic positioning rather than panic exits.

Capitulation zone in sight

The Realized Profit/Loss Ratio for SOL plummeted to 0.15 on the 2nd of August—its lowest in 30 days.

That figure shows most recent sellers exited at a loss. Historically, these capitulation-style flushouts happen near cycle bottoms.

With fewer holders willing to sell underwater, downward pressure may ease.

If past patterns hold true, this could mark the final phase of the drawdown, setting the stage for SOL to stabilize and eventually rebound on the back of reduced selling.

Momentum slows, but buyers are peeking in

After a brutal string of red candles, SOL is finally showing signs of recovery.

The latest daily candle hinted at a potential pause, even as the asset struggled below $165. The RSI sat at 41.65, closer to the oversold territory, so downside exhaustion may be near.

Meanwhile, OBV has flattened after a steady decline, so selling volume is losing steam.

While it’s too early to call a reversal, the chart suggests that sellers are tiring, and a shift in sentiment could soon open the door for a rebound.