Solana has faced significant price corrections recently, erasing gains made in mid-March. The altcoin is currently trading at $116, reflecting a 19% loss over the past ten days. 

As the price continues to struggle, many investors are losing patience, pushing them to sell their holdings and exit the market.

Solana Losses Mount

The Realized Profit/Loss (RPL) indicator shows that Solana has been underperforming for most of February and March. While there were brief moments of profit for short-term holders (STHs), the overall trend has been bearish.

These losses have contributed to mounting frustration among investors, leading many to consider selling their positions. The selling pressure is keeping the market from recovering as more and more investors choose to cut their losses.

As a result, investor sentiment has weakened, with many unwilling to hold onto their positions in the face of continued price declines. The Realized Profit/Loss data indicates that, in addition to the selling pressure from STHs, the broader market is also showing signs of caution. 

The Chaikin Money Flow (CMF) indicator also shows a concerning trend for Solana. Currently, at a monthly low, the CMF reflects that outflows are exceeding inflows, indicating that investors are pulling their money out of Solana. This lack of buying pressure is detrimental to the altcoin’s recovery prospects, as the outflows signal reduced confidence in the asset.

With the CMF in negative territory, Solana’s ability to rally appears limited, as the overall market sentiment remains subdued. The lack of investor conviction is further exacerbating the downward momentum.

SOL Price Could Witness Further Decline

At the time of writing, Solana’s price is at $116, and it is struggling to recover from the recent losses. Despite the slight uptick observed in the past 24 hours, the altcoin’s recovery remains uncertain. With investor confidence at a low, the price may continue to struggle in the short term.

The aforementioned factors suggest that Solana could dip further to $109, extending investors’ losses. If the bearish trend continues, SOL could test this support level before any potential signs of recovery emerge. This price action would keep investors on edge and delay any sustained rally.

However, if Solana can reclaim $118 as a support floor, it could spark a reversal. A breach of this level would push the altcoin toward $123, and flipping it into support would significantly bolster the bullish thesis. In this scenario, Solana could break through resistance levels and rise toward $135.

As Bitcoin (BTC) continues to dominate with increasing market share, many analysts believe Q2 of 2025 will be the ideal time to accumulate altcoins.

The altcoin market capitalization has dropped 40% from its all-time high (ATH), falling below $1 trillion. Many altcoin investors are facing losses. However, analysts believe this could be the setup phase for an upcoming altcoin season.

Will Q2 See an Altcoin Season?

Joao Wedson, an analyst from Alphractal, pointed out that many altcoins have performed poorly in the current market cycle (2022–2025).

In a post on X, Wedson emphasized that several altcoins have returned to their launch prices. Some of these were once hyped as “rockets to the moon.” This indicates a period of accumulation, making it a good time to place buy orders at low prices.

“Since December 2024, we’ve been in a bear market (actually, the sentiment was already bearish since October). But I still believe that between April and May, the market will heat up for cryptos—even if BTC drops further, as we still have lower targets.” — Joao Wedson, founder of Alphractal, predicted.

Wedson advises investors to focus on altcoin projects with strong fundamentals and growth potential. He suggests avoiding coins that will be surging in 2024, such as ETH, SOL, and TRX. His strategy is patiently waiting and buying at low prices—a cautious yet promising approach.

Meanwhile, another well-known analyst, Ash Crypto, predicts that once Bitcoin’s dominance reaches 70%, it will signal Bitcoin’s peak. Historically, this level has marked the start of an altcoin season within the following months.

Bitcoin Dominance (BTC.D) represents Bitcoin’s market capitalization relative to the total crypto market cap. When BTC.D declines, it signals that capital flows into altcoins instead of Bitcoin.

Currently, BTC.D remains above 60% with no signs of weakening. Ash Crypto’s forecast strengthens the belief that Q2 and Q3 of 2025 could begin a significant altcoin rally.

Additionally, experienced trader Merlijn agrees with this outlook. In a recent post on X, he predicted that an altcoin season similar to 2021 is approaching. He highlighted that the next three to six months will be crucial for investors to shape their portfolios.

“Altcoin season is setting up—just like in 2021… The next 3–6 months could define your portfolio.” — Merlijn The Trader predicted.

However, a recent analysis from BeInCrypto reported that the Crypto Fear & Greed Index has dropped to 25 points, indicating “Extreme Fear.” Concerns over escalating trade wars are intensifying investor anxiety.

Some analysts, such as Coin Bureau founder Nic Puckrin, believe that Bitcoin is far from a bear market, but the future of several altcoins is questionable.

Ethereum has experienced a challenging month and a half, with its price nearing a 17-month low at $1,802 at the time of writing. Despite this ongoing downtrend, which nearly sent ETH into a bear market, key investors have remained optimistic.

As Ethereum approaches these significant levels, many market participants believe that a price rebound could be on the horizon.

Ethereum Investors Capitalize On Low Prices

Ethereum’s supply on exchanges has dropped to a six-month low, indicating that investors are increasingly holding their assets off the market. This drop in exchange supply is often seen as a bullish sign because it suggests that long-term holders (LTHs) are accumulating more ETH at these low price levels, anticipating future price appreciation.

These investors are not willing to sell, demonstrating strong conviction in Ethereum’s long-term value. The decrease in exchange balances also indicates less short-term trading activity. This suggests that many investors are waiting for the price to rebound before making any moves.

Over the past month, Ethereum’s Liveliness indicator has declined, signaling that the selling pressure is weakening. Liveliness measures the activity of long-term holders, and a decline generally points to accumulation rather than selling. 

This drop reflects the growing sentiment among Ethereum’s long-term investors, who are increasing their holdings and expecting the price to recover in the future. The decline in Liveliness suggests that many are confident in Ethereum’s fundamentals and are less concerned about short-term fluctuations.

This accumulation phase suggests that Ethereum’s market sentiment may be shifting. The confidence of LTHs—who hold significant influence over the asset’s price—could lead to a strong upward momentum once the market conditions improve. 

ETH Price Needs A Nudge

Ethereum is currently trading at $1,802, just below the resistance level of $1,862. The price has been stuck under this barrier for six weeks, continuing the downtrend that has defined much of the recent price action. However, if Ethereum can break above $1,862, it could signal the end of the downtrend and the start of a price recovery.

Given the current market sentiment and accumulation by key holders, it is possible that Ethereum will continue to gain upward momentum. If Ethereum successfully breaks through the $1,862 resistance, it could move toward the $2,000 mark, regaining some of the losses from the previous weeks. 

On the other hand, should the bearish sentiment intensify, Ethereum’s price may dip further toward its 17-month low of $1,745. Failure to secure support at this level could lead to even greater losses. This could extend the recent downtrend and leave many investors exposed to a prolonged bearish market.