Retail investor Solana ends 4 weeks of selling pressure, although still incurring losses.

Solana (SOL) is currently trading at $87.29, down 0.31% on the day, as selling pressure continues to drive many to take losses for the seventh consecutive week.

on-chain data shows a significant shift in trading behavior on the exchange since March 17, 2024. Investors who had been consistently depositing SOL on the exchange in previous weeks are now withdrawing their coins.

Solana holders continue to face losses.

Net Realized Profit/Loss data from Glassnode shows that investors have been continuously selling since February 17, 2024. Solana holders have primarily been selling their SOL Token at a loss throughout this period.

There was only one exception, occurring around March 15th to 17th, 2024, when the SOL price surged to around $97. Two small green bars appeared, representing profit-taking during that localized price high.

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Since then, losing trades have continued. Recent price movements have been fluctuating around -$30 million to -$50 million per day. To alleviate selling pressure, Solana price needs to remain above investors' recent Capital price – possibly above $92.19.

Buying Solana is preferred.

Although investors are generally experiencing losses, the inflow/outflow data on the exchange tells a different story. From mid-February 2024 to mid-March 2024, investors continuously deposited millions of SOL onto the exchange every day. The highest inflow reached nearly 2.75 million SOL around March 5, 2024.

However, this trend reversed sharply after March 17, 2024. The number of SOL tokens withdrawn from exchanges each day has now reached 700,000, indicating that coin deposits have stopped. Investors are shifting to withdrawing coins from exchanges instead of selling.

This change is significant. Continuous coin withdrawals will reduce the amount of SOL available on the exchange. However, this reversal trend is still relatively new and has not yet generated any price recovery.

SOL price drops below $90.

On the daily chart, the SOL price is testing a key support zone between $88.02 and $88.54. An ascending trend line extending from the March 2024 Dip is piercing through this area, further reinforcing the support Vai of this price level.

Solana price is currently at $87.29, just below the trendline support level. The EMA has also been moving sideways around $88.54, now acting as resistance above the price.

If the daily candle closes below $88.02, the price could retrace to the next strong support zone at $81.60, approximately 6.5% lower than the current level. If we measure the volatility from the recent peak of $97 to $88, a similar decline would occur if the support is broken.

On the upside, $92.19 is the first important resistance level. If the price recovers and breaks above this level, short-term momentum could shift back towards the buyers. Data on coin outflows from exchanges is supporting bullish expectations, but the actual loss chart shows that the sellers haven't stopped yet.