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Will This Derail Solana’s Bullish Outlook?
The recent price surge of Solana (SOL) has caught the attention of many traders and investors in the cryptocurrency market. While a breach of its all-time high is possible, there are a few factors that may derail SOL’s bullish outlook.
One of the key concerns is the lack of corresponding trading volume to back its price movement. A 25% decline in trading volume over the past day suggests that the recent rally may be lacking sufficient market momentum to sustain itself. This could lead to a deeper pullback, potentially putting the entire bullish thesis at risk.
Another crucial point to consider is the ongoing uncertainty surrounding SOL’s transaction count and exchange netflow. While the network has witnessed an increase in transactions, the data also indicates that sellers have dominated the market over the past 24 hours and seven days. The significant outflows of $6.15 million and $75.18 million, respectively, highlight this imbalance.
If SOL fails to hold onto a critical support level between $188.89 and $173.24, the asset may enter a consolidation phase, potentially putting its bullish outlook at risk. This level has historically been associated with significant buying pressure, but so far, no such activity is evident.
Despite these concerns, Solana’s chart structure remains largely positive. The cryptocurrency still maintains the potential to break out and return to its previous all-time high or even push beyond it.
Source: ambcrypto.com
