The Solana (SOL) Price Has Faced Extreme Pressure

The Solana price has faced extreme pressure in the past few weeks, as on-chain data shows that Solana (SOL) investors are in a state of fear.

Solana price has faced extreme pressure in the past few weeks, and on-chain data shows that Solana (SOL) investors are in a state of fear.

Solana coin has become one of the most affected altcoins amid the bearish market performance. Bitcoin price crashed from $99,244 to $86,776.45 in seven days. Bitcoin is trading at $88,754, showing a 2.72% decrease over the past 24 hours and 7.25% this week.

Solana fell 17.11% over seven days after losing 41.64% in the past month. This time last month, the popular altcoin was trading at roughly $240 but lost around $100 since then.

The coin now trades at $140.05, and the bearish performance does not show signs of slowing down.

Solana Investors Show Signs of Fear

According to crypto analyst Ali, one main reason the price of Solana keeps falling is that many investors are in a state of fear. This view comes from Glassnode’s Net Unrealized Profit/Loss (NUPL) data.

According to the analyst:

“One reason why $SOL price keeps falling. Deep levels of fear among investors.

This view is supported by Glassnode's Net Unrealized Profit/Loss (NUPL) data, which measures the difference between the realized price and the market price of all BTC on-chain.”

#Solana $SOL investors appear to be in a state of "fear."

One reason why $SOL price keeps falling. Deep levels of fear among investors.

This view is supported by Glassnode's Net Unrealized Profit/Loss (NUPL) data, which measures the difference between the realized price and the market price of all BTC on-chain.

If the NUPL is positive, it means investors collectively have unrealized profits, and they tend to hold onto the asset. However, if the NUPL is negative, it indicates that investors are in a state of fear as they hold assets at a loss.

Solana’s NUPL has been consistently negative since mid-2023, suggesting that investors have been largely in a state of fear throughout this period.

Solana Price Could See Further Down

Further analysis shows Solana nearing key support zones.

Crypto trader Coinvo shared a chart showing SOL’s price dropping sharply toward a “massive” historical support level between $120 and $140, where the price previously consolidated before making upward moves.

"If sellers push the price below this zone, we could see further weakness in the short term."

If buyers step in at this level, Solana could stabilize and reverse upward, but further downside is possible if support fails.