- Solana struggles with fading momentum, low velocity, and weakening demand, trapped below $135 resistance.
- SOL faces capitulation risk as MVRV ratio dips below zero, signaling growing bearish pressure.
Is Solana [SOL] losing steam?
After showing early signs of recovery, Solana is once again grappling with fading momentum and weakening demand.
Now hovering around $130, SOL remains stuck below the crucial $135 resistance level — unable to build on past gains.
With broader market conditions turning cautious and risk appetite cooling, the outlook for Solana looks increasingly uncertain.
As investors turn their attention to more resilient assets, questions are mounting about whether SOL can reclaim its bullish footing or if it’s entering a prolonged consolidation phase.
Solana’s falling velocity signals demand deterioration
Solana’s velocity has dropped to its lowest point in five months, reinforcing concerns that demand for the token is drying up.
As shown in the chart, both price and velocity have sharply declined in tandem since late February, with circulation levels now mirroring those seen in October 2024.
Velocity reflects how frequently a token changes hands — so when it falls, it typically indicates reduced investor interest and lower market participation.
Source: Glassnode
This stagnation suggests that fewer traders are willing to engage with SOL, contributing to a bearish outlook. Without fresh capital or renewed trading activity, Solana may continue to underperform.
For now, sidelined investors appear to be waiting for a clearer signal before re-entering, further stalling any recovery.
Is capitulation next for SOL holders?
Solana’s MVRV ratio has dipped below the zero mark, signaling that recent buyers — specifically those who entered the market within the last two weeks — are now sitting on unrealized losses.
As the chart shows, this is the lowest MVRV level since early 2023, reinforcing the bearish trend gripping SOL.
Source: Glassnode
A negative MVRV historically heightens the risk of capitulation, where short-term holders sell to cut losses, further driving down price.
Unless investors decide to hold in hopes of a turnaround, this pressure could deepen Solana’s slump. For now, sentiment remains cautious, and without a bullish catalyst, the market may struggle to reverse course.
This zone of loss is a danger zone — especially if broader crypto conditions continue to weaken.
SOL stalls as momentum fades below $135
Solana was trading at $130.40, showing minor gains of 1.5% on the day, but the broader trend remained weak. The RSI was 43.89 — below the neutral 50 mark — indicating fading bullish momentum.
Meanwhile, the OBV was relatively flat around 66.39 million, suggesting a lack of strong accumulation or distribution pressure.
Source: TradingView
SOL’s price has been consolidating in a narrow range after its recent correction, struggling to break above the $135 resistance zone. If buyers fail to reclaim that level, the price could revisit the $120-$125 support band.
On the flip side, a decisive breakout above $135 could open the door toward $150, though current indicators point to indecision and weakening demand.
