Long-term SOL Investors Show Signs of Anxiety

SOL Breakout and Bullish Reversal

At the time of writing, Solana’s (SOL) Long-term Holder Net Unrealized Profit/Loss (NUPL) indicated increasing anxiety among long-term investors.

The NUPL’s value fluctuated between 0.4 and 0.6, suggesting that while some holders remained in profit, the closeness to the lower threshold pointed toward growing concerns about potential losses.

Although the NUPL has not dropped into negative territory yet, indicating no widespread losses, the trend toward the lower end of the spectrum since early February mirrored SOL’s visibly declining price, reflecting cautious sentiment.

Critical points of anxiety and optimism correlated with price shifts, suggesting investor sentiment was closely tied to price movements. For example, a price drop on February 5 aligned with a notable decrease in NUPL, signaling the anxiety phase.

The most probable scenario appears to be a sustained hold strategy until a clearer reversal pattern emerges, consistent with investor behavior during uncertain market periods. Investors may wait for definitive signs of market recovery before making significant moves.

SOL’s Inverse Head and Shoulders Pattern

Solana also witnessed a breakout from an inverse head-and-shoulders pattern, hinting at a bullish reversal following a decline. The neckline near $173.81 previously acted as resistance before the breakout.

Given this pattern, SOL may be expected to rise by approximately 6%, potentially reaching $180. For long-term SOL investors, this pattern offers a glimmer of hope amid prevailing anxieties, particularly as SOL shows potential for rapid recovery.

The inverse head-and-shoulders pattern is a bullish signal that could suggest accumulation phases, encouraging investors to consider re-entering or expanding positions for future gains.

This breakout might spur additional buying pressure, supporting a possible rise toward $180. However, if SOL fails to hold above the breakout level around $173.81, it could retreat to test lower supports, necessitating investor caution.

Conversely, a failure to sustain the breakout and a drop below the neckline could negate the bullish forecast, leading to a potential retest of lower support levels around $160. This scenario aligns with ongoing anxieties among long-term holders, who may then decide whether to cut losses or wait for better entry points.