#SOL Solana faces bearish pressure, price drops, significant holder reduction

Solana $SOL price has plummeted, market participation has decreased, and various factors have contributed to its downturn. Analysts reported a recent sell-off event involving $Libra, and the unlocking of 11.2 million SOL on March 1 has raised liquidity concerns.
Market performance and trading trends
Solana's price has been trading within a downward channel, indicating a continued downward trend. After a rise in early January, the asset reached a local high point in mid-January. However, bearish momentum followed, leading to a sustained decline in price. Lower high points and low points have defined Solana's price trend, reinforcing selling pressure. This downward trajectory continued into February, prompting traders to react to market conditions.
In addition to the price plummeting, the trading volume has also fluctuated. In the initial bullish phase, the trading volume surged, reflecting an increase in market participation. However, as selling pressure increased, the trading volume steadily decreased, indicating a decrease in buying activity. Raydium, a decentralized exchange based on Solana, noticed a 47% decrease in trading volume, indicating a change in trading patterns.
Large holder reduction
Over the past two weeks, the number of Solana addresses holding at least 100 SOL has decreased by 2.24%. This figure has dropped from 154,653 to 151,184. The continued price adjustments and the decrease in major holders indicate a change in investor accumulation habits. Historical data shows that strong accumulation periods often align with an upward price trend, while distribution phases are often associated with market corrections.
The decrease in the large wallet holder is consistent with changes in investor behavior trends. As the unlock of 11.2 million SOL approaches, liquidity conditions remain a factor. Investment firms Galaxy, Pantera, and Figure currently hold these coins, which were sold during the FTX bankruptcy period. Consistent with the current market pattern, Solana's price may be affected by any large-scale sell-offs.
Price changes, changes in trading volume, and changes in wallet distribution are still reflected in market data, revealing the current situation of Solana.
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