SOL NUPL Drops Below Zero for 2 Weeks As Capitulation Signals Return

Solana NUPL has traded below zero for 2 weeks and the chart shows a zone linked with past cycle bottoms.

The NUPL colors shift from anxiety to capitulation as SOL price tracks weak demand across the recent range.

Prior cycles show similar NUPL dips before strong recoveries so traders watch closely for any early reversal signs.

Solana has entered a fresh capitulation zone after its NUPL indicator stayed below zero for two straight weeks, as shown in new chart data shared by Glassnode. The pattern matches periods seen in earlier market cycles where investor losses built quickly and where local bottoms often formed before new recoveries.

Two Weeks of Deep Red NUPL Readings

The NUPL line for SOL has turned deep red across the past 14 days, as shown on the chart. The move places the indicator inside the capitulation range that previously appeared near major lows in mid-2020 and again in mid 2022. Price has also moved lower during this span. It holds near the lower end of a visible consolidation zone where demand remains weak.

Glassnode’s view shows long periods where NUPL stayed under zero during past cycles. These phases marked moments where unrealized losses grew across holders. The present structure matches those earlier points with a near-identical slope in the red zone. This visual link adds weight to current bearish sentiment across short-term traders.

The chart also displays segments of fear and hope in yellow and orange. These zones appeared earlier in the year before pressure pushed NUPL under zero again. That shift signals a break from prior optimism and sheds light on broader weakness across the Solana market.

Historical Patterns Show Similar Setups

Earlier cycles revealed that SOL often formed major lows shortly after extended time spent under zero NUPL. The chart shows this clearly in late 2020 when NUPL dipped below zero for weeks. Price soon turned higher once selling pressure eased. A similar phase returned in early 2022 with another deep dip. That event also led to a recovery once the red zone ended.

The current chart highlights a familiar color pattern with a sharp swing from yellow to orange, then red. Glassnode shows a 1-value peak near earlier euphoria zones, followed by a long decline across belief and anxiety. These shifts outline the emotional landscape that often emerges when price pressure grows. Traders monitor these transitions to track possible signs of exhaustion.

The question now is whether the present red zone will follow the same path as prior cycles, where capitulation created a base for new strength. Each cycle reflects different market forces, so exact outcomes remain uncertain. Even so, the visual rhythm across the NUPL line continues to draw attention.

Market Voices Track Exchange Behavior

Comments beside the chart note that NUPL below zero often marks common bottom zones for SOL. Traders also point to falling open interest and shrinking exchange balances as signs of ongoing stress. Others suggest sentiment has not fully washed out yet which extends the focus on current NUPL depth. The price scale shows moves between 20 USD and 200 USD across the full chart, with recent action pinned near the lower band.