Solana Holds $138 Support While On-Chain Data Reveals Tightening Liquidity

• Solana holds above the $138 support zone despite tightening liquidity and rising loss realization.
• Glassnode data shows a profit-to-loss ratio below 1, signaling weakened market confidence and reduced liquidity.
• Price remains range-bound, with key support between $134.37 and $138.12 determining SOL’s next breakout or correction.

Solana (SOL) is showing early signs of a potential price rebound, but on-chain data suggests tightening liquidity and growing loss realization for SOL holders. It is asserted that SOL is still range-bound. The question is how it will resist a deeper price fall.

Solana Faces Growing Liquidity Pressure

According to analytics platform Glassnode, Solana’s liquidity position appears to be weakening. The Realized Profit-to-Loss Ratio (30-day SMA), which measures the prevalence of realized gains vs. realized losses, has remained below 1 since the middle of November.

Source: X

This reveals that, lately, closure of positions at a loss has occurred more often than at a profit, indicating less liquidity and activity of the kind observed during deeper bear phases.

This does not indicate a long-term downtrend, but it reveals a weaker market confidence. As the number of players locking profits is reduced, the momentum decreases, and Solana becomes prone to steep rises or drops.

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Solana Approaches Critical Support Zone

Adding to this analysis, well-known analyst More Crypto Online also pointed out that Solana is experiencing a deeper-than-anticipated correction, which keeps it trading horizontally. Regarding the wave structure analysis, the next micro level of support for the wave B scenario rests between $134.37 and $138.12.

Source: X

At the time of writing, SOL is trading at $139.15, supported by a 24-hour trading volume of $12.80 billion and a market capitalization of $77.49 billion. The SOL has climbed 4.79% over the last 24 hours, suggesting that buyers are slowly stepping back in after recent market pressure.

Source: CoinMarketCap

This region is now of paramount importance when it comes to SOL’s next significant movement. If the price stays above the range, SOL will make an attempt at a new breakout. However, if it declines, the cryptocurrency market will witness a deeper correction before a recovery.

Despite the recent volatility, Solana continues to be one of the most tracked assets on the markets, thanks to the great development of their ecosystem and the rising number of developers. The next few days will prove important, since the price dynamics around the indicated support area will dictate the near-term SOL movement.

For the moment, the market is waiting with bated breath for signs that Solana can sustain support above the critical level and regain momentum following weeks of tighter liquidity.

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