From March 19 to March 31, Solana’s ($SOL) market saw not-so-subtle changes in supply distribution that appear to have come straight from the hands of some not-so-happy investors.
As the price of Solana swung about, a portion of supply that had been just sitting there took a hike and freed up some not-so-profits; a nearby cohort, however, used the opportunity of the Solana swing to make some good ol’ purchases, dragging us back toward the levels of support we found in early 2023.
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Shifts in Supply Distribution: Profit-Taking and Support Strengthening
Over the span of these two weeks, Solana’s price moved up and down. Significantly, the token’s price hit a peak of $147.49. But the how and why of the price movement provide some clues as to what we might expect in the near future—especially when considering the supply distribution patterns of the token. And for context, this behavior pattern hasn’t just been confined to Solana; several other large-cap altcoins have exhibited similar actions.
Between Mar 19 and Mar 31, the share of $SOL supply last moved at:
🟣$123.89 rose from 3.69% to 3.73%
🟣$144.54 rose from 4.2% to 4.5%
🟣$147.49 fell from 2.08% to 1.98%This suggests some profit-taking or distribution near recent highs, with supply migrating into lower cost… https://t.co/WEknpNF77N pic.twitter.com/STW2nMfhHb
— glassnode (@glassnode) April 1, 2025
At the upper end of the scale, the amount of Solana at the $123.89 price level increased from 3.69% to 3.73%. More of the tokens were situated there in this latest time frame than in the previous one. This obviously speaks to some kind of accumulation or holding pattern at that price level. And as a next step in the deductive reasoning here, it seems to speak to confidence in the price itself and in Solana’s performance around that price level.
At the $144.54 level, the share of Solana’s supply moved up from 4.2% to 4.5%. This seems to reflect some level of price accumulation at this range, as investors capitalize on the recent bullish price action and establish themselves well ahead of what looks to be some key resistance levels. What this means structurally is that there is likely a wide net of Solana holders positioned just beneath recent highs, maintaining buy-side interest as prices rise.
Not all price points appeared to be seeing accumulation. At $147.49, Solana’s supply dipped a bit from 2.08% to 1.98%. This indicated that a bit of profit taking was probably happening as Solana’s price was nearing its recent highs. Supply at this price point dropped, and it seemed that some investors who had been long Solana at much lower price points were cashing out as the price appreciated. This is also a critical indicator of sentiment and behavior within the Solana investor base. A supply drop at this level also potentially presages a distribution phase, where the base of investors holding Solana is decreasing.
Key resistance levels ahead for #Solana $SOL:
• $135.70
• $144.40
• $165.20Watch these closely! Clearing each could signal a strong continuation of the uptrend. pic.twitter.com/JDjWtOjUep
— Ali (@ali_charts) April 1, 2025
Solana’s Strengthening Support Levels
Even with the profit-taking and distribution taking place at recent highs, Solana’s price has a solid support structure at the current range’s lower bounds. This is good for investors and traders, as it suggests that the price levels toward the lower bounds of the range are increasingly being viewed as attractive by buyers. Support at these lower levels is vital for the price of Solana maintaining any semblance of stability because it prevents the price from plummeting further during times of volatility.
Solana can hold its value pretty well within this range, which gives off the impression that buyers are still quite interested at these levels. This kind of stability almost gives the sense that the token has found its footing. It almost makes one wonder if it’s now going to be just a case of whether buyers are going to keep showing up at these levels for Solana to structure favorably for continued upside. Price stays above key support levels? Then the bulls have a way more favorable setup!
Key Resistance Levels: The Path Ahead for Solana
In terms of near-term price movement, Solana has significant resistance ahead that it must overcome. The first resistance level is around $135.70. If Solana can push up through here and maintain upward price pressure, it would signify not just an uptrend resuming, but quite likely an ending to Solana’s recent consolidation period.
The next main level of resistance is at $144.40, which is near where Solana has run into selling pressure lately. A sustained move above this level seems necessary to confirm Solana has the strength to keep pushing higher. If the price can break through this resistance, it might be signaling the potential for some further gains.
The price level to watch is $165.20. This point represents a big obstacle for Solana, and getting beyond it would almost certainly mean the continuation of the uptrend, with Solana’s price potentially heading toward new all-time highs. The chart below shows Solana aiming to overcome not only $165.20 but also a series of resistance levels above that threshold. Charting Solana over the past several months reveals something of a macro get-above-and-stay-above pattern.
Conclusion: Watch for Key Price Movements
As Solana’s market keeps evolving, the balance between support and resistance will be a crucial factor in determining the digital asset’s next price moves. Recent changes in the distribution of supply suggest that investors are busy reconfiguring their positions at various price points—some heading for the exits, and some buying in. Recent price action suggests that Solana is holding strong support at lower price levels, which is encouraging, given that much of the token’s recent activity has seen it holding parallel trend lines.
For traders and investors, the key levels to watch are the $135.70, $144.40, and $165.20 resistance zones. If these levels are surpassed, it could indicate that Solana is moving into a much more pronounced uptrend. On the other hand, if Solana were to reverse back down, the zones would be crucial in determining how long Solana’s price may confine itself before it either elects a new uptrend or downtrend.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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