Even while the price of Solana experienced a slight bounce on Sunday, investors are still feeling the pain from the current pullback. Given the sharp drawdown in SOL’s price, a significant portion of the supply held by investors is now in the red, which is triggering a wave of uncertainty in the market.
Solana Investors Slip Into The Red Amid Price Weakness
Following the recent bearish action of Solana’s price, its market pressure seems to have increased sharply. This notable increase in ongoing market pressure is reflected in the Solana Percent Supply in Profit metric.
After examining the metric, Ted Pillows, a market expert and investor, reveals that the percentage of SOL supply held at a loss has deepened to levels not seen in a long time. Despite strong ecosystem activity and relentless development momentum, price volatility has put more SOL holders in the loss, signaling growing strain across the network’s investor base.
Data shared by Ted Pillows shows that over 79.6% of the total supply of SOL in circulation is now at a loss. This expanding loss profile is a reflection of both the intensity of the recent decline and the shifting mood of the market. A steady rise in supply loss is likely to impact the altcoin’s price action, raising questions about its next major move in the short term.
While the next major move remains uncertain, Pillows has outlined a pivotal moment in the altcoin’s short-term market structure. In another X post, the investor highlighted that most of the downside liquidity in Solana has now been cleared, hinting at a potential shift in trend.
What this means is that SOL has successfully eliminated the majority of the risky positions that were positioned below important support levels following weeks of intense sell pressure and deep sweeps into lesser liquidity pockets. This massive liquidity flush was observed within the $145 and $150 price range.
According to the investor, the price zone has a large liquidity cluster, while the $120 support level also has a decent one. With the removal of these liquidity pools, the market might be moving into a cleaner, more balanced area.
Such development could pave the way for a dramatic shift in direction as traders reevaluate momentum, risk, and the future of one of the most actively traded cryptocurrency ecosystems. However, Pillows noted that Solana may be the first to sweep the upside liquidity if Bitcoin exhibits some strength at this stage.
SOL’s Chart Is Showing A Confluence
On the daily time frame, DrBullZeus, a crypto analyst and trader, highlighted a confluence on the Solana chart that could determine the next price direction. DrBullZeus stated that the price is currently in the zone of the liquidity grabbed and pump hard box, a pattern that aligns with the bullish Order Block (OB).
At the same time, SOL has formed a massive Descending Triangle pattern, which points to a huge upward move ahead. If the support between the $105 and $125 holds, the expert predicts a powerful launch to $240+, the previous high, and beyond. According to the expert, this notable rally is set to kick off in 2026.
Featured image from Pngtree, chart from Tradingview.com
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