The trading volumes of the top crypto assets have been dwindling since July 2024, wrote the analytics platform Santiment in a post on X.
Source: Santiment on X
The trading activity was at its weakest average level in two years. It reflected weak demand and lower market confidence. Market participants are not rotating capital as aggressively, and each sell-off prompts more capital to flee.
Heavy macro pressure, Bitcoin [BTC] spot ETF outflows, and bearish price action since October 2025 for the leading crypto helped explain the dwindling volumes.
Thin liquidity means that reduced demand would mean rallies can be more easily faded. Yet, if seller exhaustion has reached cyclical extremes, a subsequent recovery could be quick, and even modest buying pressure could move prices quickly.
The Solana buying opportunity
Source: Ali Charts on X
Against this backdrop of reduced volume, Solana [SOL] has turned bullish, according to crypto analyst Ali Martinez. The popular technical analyst used the SuperTrend tool on the 3-day timeframe to show that the ATR trailing stop has flipped bullishly.
This is a buy signal, and the $96 and $121 levels were the next levels to watch out for.
The Hodler Net Position Change metric on Glassnode has been positive throughout 2026. The metric tracks the monthly position change among long-term investors, and positive trends show hodlers were actively adding to their holdings.
SOL still trading within a bearish trend
Source: SOL/USDT on TradingView
The swing lows at $95.26 and $67.50 were broken earlier this year, keeping the bearish Solana swing structure in place. Based on the drop from $98.41 to $60.13, Fibonacci retracement levels were plotted.
The $83.79 and $90.22 were the key resistance levels to watch out for. Another one was the $116 level, which was the realized price of Solana. Since the market price was well below this level, it showed that the aggregate holder base was facing unrealized losses.
This can prompt a sell-off on subsequent price bounces, making recovery harder until the wider market recovers and attracts greater capital inflows.
Recent selling pressure has also been reinforced by large token movements. A $15.14 million onchain SOL token move from Alameda Research was spotted recently, and the subsequent short-term price move resulted in just over $10 million in long liquidations.
Final Summary
- The Solana buy signal in recent days and hodler accumulation trends throughout 2026 gave the altcoin a bullish tint.
- Yet, the price charts and overhead supply zones meant a meaningful recovery would be difficult and requires greater capital inflows.
