Solana Traders in Freefall: SOL Crashes Below $165 – Here’s What You’re Missing

Solana's nosedive triggers panic—but the real story isn't just about price.

### The Fear Factor Hits SOL Hard

Traders are dumping SOL like it's 2021 all over again. The drop below $165 sent shockwaves through crypto Twitter—but smart money sees this as a classic overreaction.

### Behind the Bloodbath

Network congestion? VC unlocks? Or just good old-fashioned leverage liquidation cascades? We break down what's really moving the needle.

### The Silver Lining Playbook

While retail panics, institutional players are quietly accumulating. Because nothing smells sweeter than discounted SOL—except maybe the tears of overleveraged degens.

Remember: In crypto, the 'fundamentals' only matter until the charts start bleeding. Then it's pure primate brain territory.

Key Takeaways

Long-term holders are doubling down on solana despite the recent price drop. Data suggests that SOL may be close to a local bottom.

Solana [SOL] might be losing altitude on the charts, but long-term holders clearly didn’t get the memo. Instead of panic-selling, they’ve been stacking coins with great confidence.

And with most recent sellers locking in losses, the worst may already be behind us.

Long-term holders load up as price drops

Solana’s recent price dip hasn’t spooked its long-term holders.

On the contrary, Glassnode data revealed a 102% surge in Hodler Net Position Change since the 30th of July, a sign of confidence among seasoned investors.

Source: Glassnode

This metric reflects the 30-day net change in holdings by long-term participants.

Naturally, such spikes tend to signal accumulation. Despite falling prices, more coins are moving into cold storage, hinting at strategic positioning rather than panic exits.

Capitulation zone in sight

The Realized Profit/Loss Ratio for SOL plummeted to 0.15 on the 2nd of August—its lowest in 30 days.

Source: Glassnode

That figure shows most recent sellers exited at a loss. Historically, these capitulation-style flushouts happen NEAR cycle bottoms.

With fewer holders willing to sell underwater, downward pressure may ease.

If past patterns hold true, this could mark the final phase of the drawdown, setting the stage for SOL to stabilize and eventually rebound on the back of reduced selling.

Momentum slows, but buyers are peeking in

After a brutal string of red candles, SOL is finally showing signs of recovery.

The latest daily candle hinted at a potential pause, even as the asset struggled below $165. The RSI sat at 41.65, closer to the oversold territory, so downside exhaustion may be near.

Source: TradingView

Meanwhile, OBV has flattened after a steady decline, so selling volume is losing steam.

While it’s too early to call a reversal, the chart suggests that sellers are tiring, and a shift in sentiment could soon open the door for a rebound.