Has the fall of Solana ended? Two major on-chain signals have released rebound signals.

In the past three months, Solana (SOL) has experienced a roller coaster ride; although there were multiple short-term surges during this period, the overall increase was only 7.9%, with a monthly rise of just 2.3%. Recently, SOL fell to $180 as the market pulled back, and investor sentiment is low. However, on-chain data shows that two key indicators are releasing familiar "signs of recovery," which may suggest that the downtrend is nearing its end.

Whales Stop Dumping: CDD Plummets 86%

On August 17, Solana's Coin Destruction Days (CDD) indicator plummeted to 161.79 million, the second lowest this month. Compared to the previous day's 1.16 billion, it fell from peak to trough in just 24 hours, with a decline of 86%.

Interpretation: A CDD crash typically signifies that long-term holders are pausing their selling, and the dormant supply remains stable.

Historical Comparison: A similar situation occurred in early August, followed by a strong rebound of SOL after a period of sideways consolidation.

This indicates that the recent volatility is more attributable to short-term positions rather than long-term capital withdrawal. If CDD can remain at a low level, it will help consolidate the foundation for a rebound.

Exchange Balance Decrease: Selling Pressure Weakens

On-chain data shows that from August 14 to 16, within a short span of three days, the exchange's SOL balance dropped from 32.35 million to 31.23 million, a decrease of over 1.12 million (about 3.46%).

Abnormal phenomenon: During typical pullback periods, exchange balances usually rise due to sell-offs, but this time there is a capital outflow, indicating that the market is passively absorbing chips during the decline rather than experiencing panic selling.

Current Status: Although the latest data shows a slight pullback in the balance, it is still close to recent lows, with limited supply pressure.

Technical Analysis: The Support Area is Still Being Guarded

The daily chart shows that SOL fell back to $180.89 after failing to break through the resistance at $189.95, and is currently oscillating in the range of $178.24–$173.46.

Upward target: If it holds the support at $173.46, SOL is expected to challenge the resistance zone of $189–199 again. After breaking through $199.27, it may open up space for an upward move to $209.

Downside risk: A fall below $173.46 will invalidate the short-term bullish scenario and may trigger a deeper pullback.

Conclusion

From the CDD plummet to the decline in exchange balances, Solana's on-chain data is signaling a weakening of selling pressure. If the key technical support level can hold, SOL may welcome a new round of rebound, challenging the $199 or even $209 region. Investors should closely monitor the $173.46 support and the CDD trend, as this may be a key basis for determining trend reversal. For more real-time market data and on-chain analysis, please follow the official Gate platform.