Solana (SOL) is approaching a decisive moment as on-chain data reveals significant supply clusters forming key resistance and support zones. According to fresh Glassnode data, these price levels could determine SOL’s short-term trajectory amid declining market velocity.
Major Resistance Zone Forms at $144
On-chain analysis shows a substantial concentration of SOL tokens at the $144 level, with approximately 27 million SOL (5% of total supply) currently positioned at this resistance point. This level’s significance is amplified by historical context – during SOL’s January 19 all-time high, this same zone held 20.6 million tokens.
The 6.4 million SOL increase in this zone suggests many investors are awaiting price recovery to break even, creating a psychological barrier that could impede upward momentum. A secondary resistance wall sits at $135, containing 26.6 million SOL tokens.
Strong Support Building at $112
A crucial support level has emerged at $112, where 9.7 million SOL (1.67% of supply) is currently positioned. This represents a significant increase from the 4 million SOL held at this level during January’s peak, indicating strong accumulation by long-term holders. This reinforced support zone could provide a reliable floor during market corrections.
However, as Bitcoin dominance continues rising towards 68%, altcoins like Solana face additional pressure. The support structure weakens considerably below $112, with the $94-$100 range holding 21 million SOL but showing sparse buyer interest below these levels.
Market Velocity Signals Warning
Solana’s velocity metric has dropped to five-month lows, matching levels from October 2024. This declining circulation rate reflects reduced trader engagement and could limit near-term recovery potential despite strong support levels.
FAQ
Q: What is the strongest resistance level for Solana?
A: The $144 level represents the strongest resistance, with 27 million SOL (5% of supply) concentrated at this price point.
Q: Where is Solana’s key support level?
A: The primary support sits at $112, reinforced by 9.7 million SOL holdings and increased accumulation by long-term investors.
Q: What does declining velocity mean for SOL price?
A: Reduced velocity indicates lower trading activity and could limit upward price movement despite strong support levels.