Solana has updated its six-month high

The price of Solana SOL $204.54 Binance-Peg SOL -0.74% Market capitalization $0.23 billion VOL. 24 hours $0.72 billion has risen to a six-month high, continuing an upward trend amid a general revival in the crypto market. Altcoin has updated local levels, which indicates renewed demand from investors. At the same time, the price increase is accompanied by active sales by large token holders, which puts additional pressure on the market.

Over the past three days, Solana’s volumes on exchanges have increased dramatically. More than 2 million SOL worth over $ 432 million have been transferred to exchanges' accounts. This trend signals investors' desire to take profits amid volatility rather than remain in open positions. This is a typical scenario during a rapid price increase, when short-term caution prevails over long-term holding of an asset.

This was further confirmed by the Coin Days Destroyed (CDD) indicator, which reached a three-month high. The indicator tracks the movement of coins that have been held for a long time, and its growth indicates that long-term investors have started selling. Their activity has been a key factor in the sharp increase in SOL balances on exchanges, which could potentially weaken market momentum.

At the time of writing, Solana is trading at $ 216, just below the $ 221 resistance. Technical indicators, including the Parabolic SAR, confirm the presence of a strong uptrend. If SOL manages to gain a foothold above this level, further growth may accelerate, allowing it to maintain its gains despite pressure from sellers.

In case of an unsuccessful breakout of the $ 221 level, the price may adjust downward. The nearest support is around $ 201, and breaking through it could open the way to a drop to $ 189 or even $ 175. Such a development would temporarily cast doubt on the short-term optimism in the Solana market.