Solana holders accumulated 367 million USD SOL in one week as the price fell.

Solana (SOL) has recently experienced a slight decline as it failed to maintain the support level above $200. Market sentiment is quite mixed, but there are still signals indicating that SOL has the potential to bounce back and become bullish again.

However, the next few days will be a critical period to determine whether SOL can bounce back or continue to face the next challenges.

Investors Begin Accumulating SOL

According to data from Coinglass, throughout July, the funding rate of Solana remained positive, indicating investors' confidence in the potential of this altcoin. However, currently, this rate is approaching the negative threshold, signaling a decline in bullish sentiment.

When funding turns negative, it means that many traders are starting to lean towards a bearish trend and increasing their Short positions, putting pressure to push the price lower in the short term.

The funding rate of Solana | Source: CoinglassThe Solana balance on exchanges has decreased by 2.03 million SOL over the past week, signaling increased accumulation. This indicates that investors have purchased SOL worth 367 million USD, expecting the price to bounce back.

The increasing number of SOL leaving exchanges indicates that many are holding long-term and waiting for an opportunity to take profits when the price bounces back.

Solana balance on the exchange | Source: Glassnode## SOL retests the important support level

SOL is currently trading around $172, just above the important support level of $171. Although the spot market remains bullish, mixed signals from the derivatives market suggest that SOL price may face downward pressure in the coming days.

If the downtrend continues, SOL may fall to around $165 or remain in the accumulation phase between $177 and $189 until a clear trend is established. This period of instability may last until the market stabilizes again.

SOL Price Analysis | Source: TradingViewHowever, if the accumulation pressure continues to overshadow the selling pressure from Short positions, SOL could surpass the $189 level and convert it into a support level. This shift will allow the altcoin to target $201, potentially invalidating the bearish outlook and reigniting bullish momentum.

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