What is holding back the explosion of Solana's price?

Solana (SOL) faces challenges in recovery after a sharp decline, still being held below the resistance level of $130. Although this altcoin has shown signs of stabilization, the growth momentum remains quite fragile.

Unlike previous rallies driven by new capital inflows, Solana’s next trend seems to depend more on existing investors rather than newcomers entering the market.

Solana Holders Show Perseverance

On-chain data indicates the first signs of stability. The Chaikin Money Flow (CMF) indicator has increased significantly in recent days. Although still below zero, the upward trend of this indicator suggests that capital outflows are slowing down.

This is an important factor for SOL’s recovery prospects. A decrease in capital outflows often precedes a shift to inflows. When buying pressure surpasses selling pressure, the price of SOL can react quickly. If the CMF indicator continues to improve, it will reflect growing confidence among current holders.

Solana’s CMF indicator | Source: TradingView However, macro indicators provide a more cautious outlook. The number of new Solana addresses has dropped sharply in recent sessions, from 6.077 million to 5.390 million, a decline of 11.3% in just ten days.

This decline in network activity indicates waning speculative interest. New investors are cautious, mainly due to a lack of short-term catalysts. The absence of new capital inflows makes the role of existing holders more crucial in maintaining price stability and supporting the recovery process.

New Solana addresses | Source: Glassnode## SOL Price Recovery Outlook

Currently, SOL is trading around $126, still unable to break through the resistance level of $130. The price movement mainly shows accumulation rather than a clear breakout. SOL’s immediate goal is to regain the $130 mark, which would signal a positive shift in short-term momentum.

Reduced capital outflows increase the likelihood of price recovery. If current holders continue to accumulate and inflows resume, buying pressure could push SOL back to $130. However, to sustain above this level, SOL needs stable support from the market rather than just short-term speculation.

Solana Price Analysis | Source: TradingView The downside risk remains if market sentiment worsens. If selling pressure increases, Solana could fall below the support zone of $123. If this level is broken, the next target for decline would be $118. Losing this support level would weaken the bullish outlook and reinforce a short-term negative trend.