The price of Solana is unlikely to reach 250 dollars as new investors hit the lowest levels of the year.

Solana (SOL) has witnessed an impressive bounce back in recent weeks, maintaining a steady growth amid new optimism in the global crypto market. However, investor behavior and a decline in participation levels indicate that sustaining this momentum may be challenging for Solana in the near future.

Pessimistic sentiment from Solana investors

The number of new addresses interacting with Solana has fallen to the lowest level of the year, signaling a decline in enthusiasm from potential investors.

Despite the short-term volatility, the number of new participants entering the network is decreasing, indicating that the confidence of both retail and institutional investors remains weak. The lack of new capital flows may hinder the development of Solana in the coming days.

Without an increase in the number of new addresses, the price of Solana may struggle to find the necessary momentum to sustain a rally above the 250 USD threshold. Weak on-chain growth is often a precursor to price stabilization or a slight adjustment.

New address of Solana | Source; GlassnodeChaikin Money Flow index (CMF), an important indicator of capital inflow and outflow, also shows a worrying picture for Solana. At the time of writing, CMF indicates limited capital inflow from both new and current investors.

This indicates that liquidity is weakening, a negative signal for any asset looking to expand its bullish run.

For Solana, strong inflows of capital are the determining factor in maintaining upward momentum and avoiding a state of exhaustion. Without the reinforcement of inflows, the liquidity of the network may continue to fall, making SOL susceptible to short-term adjustments.

Chaikin Money Flow Index Solana | Source: TradingView## The price of SOL needs to establish strong support

Currently, the price of SOL is at 231 USD, just below the resistance level of 232 USD. Breaking through this level could bring SOL closer to 250 USD, marking an important challenge for its bullish outlook.

However, the weak participation of investors and the decrease in cash flow indicate that SOL may not reach this milestone. If the price is rejected at the level of 232 USD, it could return to the level of 221 USD, increasing the downside pressure.

Solana price analysis | Source: TradingViewIf market sentiment improves and investors regain confidence, Solana could bounce back, surpassing the $242 level to reach the $250 target once again. This would invalidate the bearish hypothesis.

Mr. Giáo