The worth motion of Solana was quite underwhelming over the past week, mirroring the worsening climate of the altcoin market. Interestingly, the launch of the SOL futures exchange-traded funds (ETFs) through the week did little or no to jolt the altcoin’s price back to life.
Following the severe price downturn that hit the market, including the Solana token, investors were left wondering when it was best to “buy the dip.” The newest on-chain remark suggests that it would finally be time for investors to get back into the SOL market.
SOL Long-Term Investors Fearful – A Buy Signal?
In a March 21 post on the X platform, outstanding crypto analyst Ali Martinez said long-term SOL holders at the moment are in fear. The relevant on-chain indicator here is the “Long-Term Holder Net Unrealized Profit/Loss (NUPL)” metric, which measures the difference between market cap and realized cap divided by market cap.
This NUPL indicator provides insight into the ratio of long-term investors in profit at every given time. When this metric’s value is over zero, it indicates that more investors are in profit; while a less-than-zero value for the NUPL indicator implies that more investors are within the red than those in profit.
Although an upward trend for the metric suggests that more coins are starting to enter profit, it also signifies that more investors are inclined to take profit — resulting in increased bearish pressure. Alternatively, a falling NUPL value indicates investors’ reduced willingness to comprehend loss, leading to reduced selling pressure.
Source: @ali_charts on X
As shown within the chart above, long-term Solana investors at the moment are in fear, because the NUPL metric slipped beneath the 0.25 mark. Based on earlier logic, this class of SOL holders is less prone to sell their assets and realize their losses, signaling less bearish pressure for the altcoin.
Furthermore, Martinez noted that “smart money” investors have all the time shown a willingness to enter the market in periods like this. “Be greedy when others are fearful,” the analyst said in regards to the strategy.
Historically, the crypto market tends to maneuver in the group’s wrong way. Hence, it is perhaps time to “buy the dip,” especially with the long-term investors currently skeptical in regards to the promise of the Solana token.
Solana Price At A Glance
As of this writing, the worth of SOL sits just beneath the $130 level, reflecting a 0.4% decline prior to now 24 hours. Based on CoinGecko data, the altcoin’s value has dropped by almost 5% prior to now week.
The worth of SOL on the every day timeframe | Source: SOLUSDT chart on TradingView
Featured image from Aivaras Sakurovas | Dreamstime.com, chart from TradingView
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