#Cryptomarketrebound

Solana Faces Tug of War Between Short-Term and Long-Term Investors; Will the Price Be Affected?
Solana has been in an uptrend for over three months, but recent selling pressure briefly disrupted this momentum. The altcoin experienced a dip before quickly recovering as investor support stabilized the market.

Despite signs of strength, mixed sentiment among investors is creating uncertainty about Solana's short-term direction.

Solana Investors Show Mixed Sentiment

On-chain data highlights growing bearish sentiment among long-term investors (LTHs). Solana's Liveliness metric has risen in recent weeks, indicating increased movement of coins from dormant wallets. This behavior suggests LTHs are shedding their holdings, reducing their stability and putting downward pressure on the altcoin's overall price movement.
This trend has continued over the past month. While the pace of LTH selling has slowed, it hasn't stopped completely. The continuous outflows reflect a cautious approach among experienced investors and likely contributed to Solana's recent decline.

Against this pressure, short-term investors (STHs) are maturing. HODL data shows that the supply held between one and three months has increased to 14.4%, reaching a five-month high. This suggests that new market participants are choosing to hold rather than sell despite volatility, and their confidence is growing.

The maturation of STHs has been crucial in supporting Solana's upward trend. These investors are balancing the selling activity of LTHs by choosing to hold during recent volatility.
SOL Price Holds

Solana is trading at $217 and testing the uptrend line, holding above the $215 support level. This steady recovery highlights investors' determination to maintain upward momentum after brief interruptions caused by increased selling pressure from LTHs.

The slightly bullish outlook could extend Solana's rally. If momentum continues, SOL could break above the $214 and $221 resistance levels. Breaking beyond these thresholds would strengthen expectations for further gains in the coming weeks, paving the way for a move to $232.
However, if selling pressure from long-term investors increases, Solana risks falling below $206. A drop to $200 would signal weakness, invalidating the bullish thesis and potentially triggering renewed bearish sentiment in the altcoin's market structure.