- Solana’s rapid decline in Q1 raised concerns about the future direction of assets.
- Without a clear catalyst for recovery, more disadvantages may be at the table.
Solana (SOL) began with a hard Q1, starting in 2025, dropping 34%, lost $ 100 million in market cap, and wiped all profits from over -election advertising.
Now, return to Low in September 2024, is the Q2 different, or is the risk of selling high -level selling still too strong?
As FOMO disappears, the risk of surrender increases
Like many notes, Solana is struggling with a combination of macro and micro economic factors. However, the Q1 stagnation is noticeable as one of the most serious assets.
From a technical point of view, Solana’s 1D price chart lacks clear support levels. If there is no strong optimistic demand at the main level, assets are especially risk of further reduction when emotions are weakened.
At the time of writing, Solana’s’ S reached the highest level and only 32%of the profit supply. Since underwater holders tend to surrender, this imbalance increases the possibility of selling.
NUPL (NET Unrealized Profit and Loss) Metric indicates that the short -term holder (STH) has entered the surrender stage. This can cause a wave of selling.
If a wider market does not soon recover, Solana’s network can experience a significant liquidity liquidity.
Source: Glass Node
Historically, Solana found a local floor only when entering the hope/horror stage. Here FOMO earns market trust. Without these changes, sales pressure can continue and there is a risk of further reduction.
In addition to the weak outlook, the SOL/BTC pair deleted profits in mid -March and declined per week.
In the press time, MACD was just before the weakness, and SOL signaled that it could test $ 115 soon.
Can Solana turn it in the second quarter?
SOLANA started strong in the first quarter, with the new address soaring to 8 million until mid -January, but the amount of exercise decreased sharply and the number fell to a six -month minimum of 312K.
Source: Glass Node
In the beginning of the quarter, Solana saw impressive spikes in Staying and Dex volume and shows healthy investor participation. But both indicators fell significantly, much lower than the best before the election.
The surrender fear and lack of spot accumulation are risk of losing $ 115 support.
Unless emotions or catalysts arouse demand, optimistic Q2 seems to be far away.