Solana Price May Struggle To Reach $250 As New Investors Hit Yearly Low

Core Viewpoint - Solana (SOL) has experienced a notable recovery recently, but declining investor participation and new address creation may hinder its ability to maintain momentum in the near term [1][2]. Group 1: Investor Behavior - The number of new addresses interacting with Solana has reached a yearly low, indicating a decrease in enthusiasm from potential investors [2]. - Retail and institutional confidence appears to be tepid, as fewer new participants are joining the network, which could limit Solana's growth [2][5]. - Weak on-chain growth is often a precursor to price consolidation or minor corrections, suggesting that Solana's price may struggle to sustain a rally beyond $250 without an increase in new addresses [3]. Group 2: Capital Inflows - The Chaikin Money Flow (CMF) indicates limited inflows from both new and existing investors, suggesting weakening liquidity for Solana [4]. - Strong capital inflows are essential for maintaining bullish momentum; without them, Solana's liquidity may further decline, making it vulnerable to short-term corrections [5]. Group 3: Price Analysis - Solana's current price is $231, just below the $232 resistance level; a breakthrough could lead to a test of the $250 mark, which is critical for its bullish outlook [6]. - However, weak investor participation and declining inflows raise concerns that Solana may not reach this milestone, with a potential rejection at $232 pushing the price back toward $221 [6]. - If investor sentiment improves, Solana could regain strength and push past $242, potentially invalidating the bearish outlook [7].