Solana (SOL) remains under pressure as the asset continues to decline, with sales volume steadily increasing in the market.
To put this into perspective, the token is down 72% from its all-time high above $500. It recently traded at $83, a level last seen in January 2024.
The scale of the selling activity highlights the dominance of the bears in the market. However, this does not automatically confirm that SOL will prolong its decline.
Several indicators suggest that the asset has reached a decisive point, where the next move could lean in either direction.
A tight position on the chart
Alphractal data indicates that SOL may be entering a critical phase, as reflected in the Delta buying and selling pressure chart.
Delta buying/selling pressure is an on-chain metric that measures whether buying or selling volume has dominated over a specific period of time, typically 90 days.
A red reading signals stronger selling pressure, while a green reading suggests buyers are in control.
Source: Alphractal
Current data shows that sellers dominate. However, this doesn’t tell the whole story. Historically, when the Delta turns red, it often signals either that the asset has reached a local bottom or that a new bearish wave is beginning.
At this stage, both scenarios remain plausible. It is therefore essential to evaluate additional market indicators to better understand the overall sentiment.
Slight accumulation in progress
The spot market witnessed moderate buying pressure over the last four to five days across several centralized exchanges.
During this five-day period, two sessions stood out. On February 27 and March 1, buyers absorbed approximately $24 million and $27.81 million of SOL, respectively.
In total, approximately $60.72 million worth of Solana was accumulated during this period.
Although this figure remains relatively modest compared to previous cycles, it indicates that investors are still willing to intervene at current levels.
Source: CoinGlass
Traditional investors have also increased their exposure. According to Sosovalue, this group recorded approximately $44 million in weekly purchases, their largest weekly influx since the week ending January 16.
Together, these inflows provide some support against further declines. However, they do not yet represent the type of aggressive demand typically associated with the start of a sustained recovery.
Overall market structure remains neutral
A broader look at market structure provides additional context. The Accumulation/Distribution (A/D) indicator continued to move sideways, reflecting some balance between buyers and sellers.
This consolidation suggests that neither side has established decisive control.
For SOL to confirm a stronger directional move, the A/D indicator would need to record a significant rise to validate bullish momentum or a sharp decline to confirm a new distribution.
Source: TradingView
For now, the limited behavior indicates that some participants are gradually accumulating assets with longer-term prospects, while others remain cautious amid ambient uncertainty.
Solana remains at a critical juncture. Whether this is a rebound or a continuation of his decline will likely depend on which side gains conviction in the coming sessions.
Final summary
- SOL sits between two major signals, indicating either a potential recovery or the risk of another sell-off.
- More than $100 million worth of SOL was purchased last week by retail and traditional investors.
