Solana Faces Significant Downside Risk with Lack of On-Chain Support; Bitcoin's Structure More Resilient
Solana Faces Significant Downside Risk with Lack of On-Chain Support; Bitcoin's Structure More Resilient
An analyst has highlighted a substantial 'air gap' for Solana (SOL) below $144, indicating a critical lack of major on-chain support levels until a much lower $24. This suggests significant downside vulnerability for SOL, which has already slipped below $144. In contrast, Bitcoin (BTC) exhibits a more even supply distribution with reliable support barriers identified around $82,000 and $67,000, positioning it as more resilient compared to Solana's precarious structure.
Solana's Precarious On-Chain Support
An analyst has pointed out a substantial supply “air gap” for Solana (SOL) below the $144 mark, revealing a scarcity of major on-chain support levels until the cryptocurrency reaches a significantly lower price point of $24. This analysis, based on UTXO Realized Price Distribution (URPD) data from Glassnode, underscores a critical vulnerability in SOL's market structure.
According to analyst Ali Martinez, who shared insights on X, the URPD data for Solana indicates that the largest supply zones are concentrated above $144. Below this threshold, the network exhibits relatively thin clusters of coin accumulation. Martinez explicitly noted, “There’s barely any meaningful demand until $24,” highlighting the potential for a steep decline should current levels fail to hold.
Solana has already begun to slip below its last significant support level of $144, raising concerns about its near-future price trajectory given the absence of robust on-chain demand cushions. The coin recently dropped to $135 during a plunge but has since recovered marginally to $141.
Bitcoin's Comparative Resilience
In a contrasting analysis, Martinez also presented URPD data for Bitcoin (BTC). Unlike Solana, the leading cryptocurrency exhibits a more even supply distribution. This structural difference implies that Bitcoin possesses more reliable support levels to depend on below its current trading range. Specifically, the analyst identified $82,000 and $67,000 as crucial levels below $95,000 that represent significant supply cost bases, potentially acting as strong support barriers in the event of a downturn.