‘Fearful’ Solana LTHs should count on THESE factors in the short term!

“Solana’s LTHs: The Fearful Few or the Smart Money?”

Long-term Solana holders, those poor souls, are showing signs of fear, but these are the moments when the wise and cunning step in, like a fox in a henhouse 🐓
SOL hit a new ATH in network adoption, with 11.09 million addresses now holding the token, a veritable sea of Solana enthusiasts 🌊

Solana’s (SOL) long-term holder Net Unrealized Profit/Loss (NUPL), alongside SOL’s price, indicated different emotional states through zones ranging from 0.1 to 0.65, a wild ride of emotions, if you will 🎢

At press time, the emotion of fear reigned on Solana holders, like a cold wind on a winter’s night, due to uncertainty, with glimpses of optimism due to the balance between gains and nerves. The NUPL rose to 0.6 in late January, marking belief levels of market confidence, but then, alas, it fell to 0.3 in mid-February, triggering an optimism-anxiety phase of fear 🤯

The NUPL’s position in March hit hope-fear levels, while SOL maintained a price of around $120 and continued its downtrend from a peak value of about $280, a tale of two cities, if you will 🌆

In fact, Glassnode’s data suggested that periods of fear have historically marked recoveries, a silver lining in the dark cloud, so to speak 🌫️

Network adoption and volume

Despite the fear, however, all may not be lost, for as the great Russian proverb says, “A pessimist is one who, when he has a pair of high heels put before him, says he can’t walk in them.” And so, positive signals might be emerging, like a ray of sunshine on a cloudy day ☀️

This metric for adoption hit its highest point in mid-March, despite the altcoin’s price declining from $200 to $127.58, a tale of two metrics, if you will 📊

This divergence possibly stemmed from negative market sentiment and profit withdrawal, a case of “the dog that didn’t bark,” if you will 🐕

Now, robust long-term belief has driven this hike as bigger SOL holders and new investors are coming into the market, a veritable tidal wave of Solana enthusiasts 🌊

Soure: Glassnode

The fall in price seemed to produce anxious reactions among users, like a nervous tic, hinting at unpredictable outcomes and doubts, a veritable rollercoaster of emotions 🎠

Worth noting, however, that the prevailing market hesitation exists due to positive fundamentals, a case of “the glass is half full,” if you will 🍹

Additionally, Solana received substantial cross-chain transfers, primarily from Ethereum and Arbitrum, among other chains, a veritable influx of blockchain assets 🚀

The massive inflows of blockchain assets to SOL, supported by its enormous scalability and minimal transaction fees, surpassed other chains, a veritable Solana-sized tidal wave 🌊

SOL continues to maintain its position as the prevailing recipient of interchain traffic, a veritable Solana-shaped magnet, if you will 🧲

Can the positive signs counter the fear in SOL’s LTHs?

The record-high network adoption, combined with strong cross-chain inflows, revealed Solana’s increasing confidence and scalability, a veritable Solana-sized fortress, if you will 🏰

Hence, it might do its part in reducing the anxiety of long-term holders, like a soothing balm on a troubled soul 🙏

Fear-driven market conditions have historically paved the way for crypto price recoveries, a veritable silver lining in the dark cloud, so to speak 🌫️

The price decline indicated short-term market wariness, as well as temporary cautiousness, a veritable rollercoaster of emotions 🎠

As far as bullish market factors are concerned, it’s still not clear whether they’ll be able to overcome market fear in the long term, a veritable puzzle, if you will 🧩

This makes it difficult to predict the outcome of this uncertainty between optimism and doubt, a veritable game of Solana-sized roulette 🎲

However, it can be expected to have some impact on SOL going forward, a veritable Solana-shaped ripple in the pond, if you will 🌊

2025-03-22 23:09

Network adoption and volume

Can the positive signs counter the fear in SOL’s LTHs?

Read More