An analyst has highlighted a significant gap in supply support for Solana below $144, with no major on-chain support levels until much lower prices.
In a recent post on X, analyst Ali Martinez examined Solana’s support using on-chain data. In this type of analysis, a price level’s potential to act as support or resistance depends on how many investors bought their coins at that price. This is because holders view their purchase price as a key level and react strongly when the price tests it again. The more investors who bought at a particular price, the bigger the potential reaction when that level is revisited.
The nature of the reaction depends on the direction of the price movement and overall market sentiment. If the price tests a level from above, holders might buy more, seeing the drop as a temporary dip and expecting to profit again. This can provide support. Conversely, if the price tests from below, holders may sell in a panic to break even, fearing further losses, which creates resistance.
Martinez shared Glassnode’s UTXO Realized Price Distribution (URPD) data to show Solana’s current supply cost basis. The chart reveals that the largest supply concentrations are above $144. Below this level, the clusters are much thinner. “There’s barely any meaningful demand until $24,” the analyst noted.
With SOL already falling below the key $144 support, its near-term performance is uncertain due to the lack of strong on-chain support levels.
In another post, Martinez compared Bitcoin’s URPD data, which shows a more even supply distribution. This means Bitcoin has potential support levels below its current price, such as $82,000 and $67,000, which represent the cost basis for significant amounts of supply and could act as buffers during declines.
SOL’s price recently dropped to $135 but has since recovered to $141.
Frequently Asked Questions
Of course Here is a list of FAQs about the topic Analyst Warns Solana Could Drop to 24 Without Strong Support designed to be clear concise and helpful for all levels of investors
Beginner Definition Questions
1 What does strong support mean in this context
Strong support is a price level where a lot of buyers have historically stepped in to purchase an asset preventing the price from falling further Its like a floor that the price has bounced off of before
2 Who is the analyst mentioned and why should I trust them
The analyst is typically a financial expert or trader who studies market charts and trends Their predictions are informed opinions not guarantees Its always important to consider multiple sources and do your own research before making investment decisions
3 What is Solana
Solana is a blockchain network like Ethereum designed to host decentralized applications and cryptocurrencies SOL is the native cryptocurrency token used to pay for transactions and operate on the Solana network
4 Why would the price of Solana drop
Cryptocurrency prices can drop for many reasons including negative market sentiment broader economic factors negative news specific to Solana or a general selloff in the crypto market
Technical Market Analysis Questions
5 How does an analyst determine the 24 price level
They use technical analysis looking at historical price charts The 24 level is likely a previous point where the price found strong support If that level is broken it could signal further decline as sellers take control
6 What happens if Solana breaks below the 24 support level
If the price falls and stays below 24 it could trigger more selling as investors who bought near that level may sell to limit losses This could push the price down further to find the next lower support level
7 What is the difference between support and resistance
Support is a price level where buying interest is strong enough to stop a decline
Resistance is a price level where selling pressure is strong enough to stop an advance
8 Are there any other important support levels to watch for Solana
Yes analysts often identify multiple support levels