After a 30% rally in a month, Solana (SOL) is now at risk of profit-taking. On-chain indicators show bearish signals that might slow down the upward momentum. Let's dive into the detailed analysis.
Solana (SOL) is currently trading at around $210. Up 3.09% on the day and nearly 30% over the month. However, despite these substantial gains, traders may not have fully felt the impact of this rally yet. Pullbacks have been brutal and Solana’s price is struggling to maintain momentum, stabilizing in a range between $205 and $215.
At the dawn of a new month, Solana’s familiar scenario could well repeat itself: A new local peak facing the risk of profit-taking. Indeed, the NUPL indicator (Net Unrealized Profit/Loss) reveals that Solana holders are sitting on substantial profits, which often coincides with phases of profit realization.
In recent days, Solana’s NUPL has climbed about 15.4%. Moving from 0.26 to 0.30 and forming a new local peak. However, previous peaks have systematically coincided with corrections in price. For example, when the NUPL reached a peak on August 28, Solana’s price slipped from $214 to $205, a 4.2% drop.
With the NUPL approaching a high level again and Solana’s price around $210, the configuration suggests that a new wave of profit-taking could emerge. But that’s not all…
The net position change of Solana “hodlers” (long-term holders) has also turned red, falling below -1.5 million SOL. This indicates that these long-term investors are reducing their exposure while prices climb—a bearish divergent signal.
Solana’s price action reflects this same hesitation. Although the token trades slightly above $210 after a 30% increase over a month, it has failed to transform these rebounds into genuine rally phases. A clear breakthrough above the $215-220 zone would be necessary to extend the bullish trend and dismiss the correction scenario.
Furthermore, the Money Flow Index shows that new capital is not aggressively committing to support a price increase. This bearish divergence suggests a lack of support for the current rebound.
With unrealized profits still high, long-term investors disengaging and a lack of new capital inflows, Solana’s current configuration seems fragile. As a new month approaches, traders will need to remain vigilant, risking a profit-taking phase that could undermine the token’s rebound.
Take advantage of Solana’s current price of $206.5 on Bitget. A strategic opportunity to enter at the key $205-210 zone, before a potential rebound toward $215-220.
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