Solana's Price Faces 27% Resistance Zone, Investors Rotate Positions

Solana's recent price movements have sparked significant interest among investors and analysts. The cryptocurrency faced renewed resistance near $144, as indicated by on-chain data. Specifically, nearly 27 million SOL last moved between $144 and $156, marking this range as a key resistance zone. Additionally, another 26.6 million SOL changed hands between $132 and $144, forming a dense supply cluster. This concentration of tokens at these price levels suggests that many traders are holding their positions, which can lead to predictable market reactions. As the token revisits these levels, selling pressure intensifies, making it challenging for the price to break through these resistance zones.

Between March 19 and 31, Solana's supply data highlighted clear signs of profit-taking and reaccumulation. Glassnode reported a 0.3% increase in tokens moved at $144.54, while holdings at $147.49 dropped by 0.1%. This shift signals reduced conviction at recent highs and indicates that investors are rotating into lower price zones, reinforcing support between $123 and $144. Accumulation has also been rising near $112, where holdings more than doubled since January, from 4 million to 9.7 million SOL. This shift underscores a broader recalibration of key support and resistance levels, with holders who entered between $144 and $147 seeking exits. If the altcoin’s price revisits this range, selling may intensify unless buyers step in to absorb the pressure.

A strong support zone has formed between $94 and $100, where over 21 million SOL—about 3.5% of supply—last changed hands. This range may cushion future declines. Funding rate trends also confirmed shifting sentiments. From March 18 to 24, SOL rose from $120 to over $140, with funding rates peaking at +0.0035 as long positions increased. After March 25, the altcoin’s price dropped to $125, and funding turned negative, hitting lows of -0.0047—a sign of a bearish shift in trader expectations. By late March, funding rates stabilized near neutral values, reflecting a period of calm and consolidation as the market digests previous gains and prepares for the next move.

Liquidation data further reinforced this view. From March 24 to April 2, $5.6 million of $7.6 million in liquidations were long positions. On March 28, the price fell from $137 to $125, triggering $3 million in liquidations. Longs made up 73.68% of all liquidations, highlighting excessive bullish leverage. The unwinding of these positions amplified short-term volatility and deepened the decline. Exchange data revealed that liquidation volumes were fairly evenly spread, with no single exchange leading the activity, indicating a broad market reaction.

Solana’s daily active addresses peaked at 6.5 million on January 20 but had fallen by 46% to 3.5 million by April 2. Activity has stabilized above 2.5 million since March, suggesting a steady but less engaged user base. Spikes in January and March were short-lived, likely tied to campaigns or launches, indicating that Solana’s growth remains event-driven, with a strong core community but limited sustained engagement.

Looking at the combined data, a few trends stand out. Token flows revealed redistribution from the $147-zone into lower price bands, easing overhead resistance and reinforcing support below $144. For now, Solana will remain range-bound below $130, consolidating as it waits for a decisive trigger. The current market dynamics suggest a period of consolidation and recalibration, with investors adjusting their positions in response to recent price movements and on-chain data. The future direction of Solana will depend on whether buyers can step in to absorb the selling pressure or if the market continues to consolidate at these levels.