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Will Solana’s Recent Pullback Derail Its Bullish Outlook?
Solana (SOL) has been gaining traction in the market, with a significant surge of 5.42% over the past 24 hours. While this might seem encouraging for investors, it is essential to analyze the underlying dynamics driving this rally.
Recent Transaction Count Spike Could Be Deceptive
On one hand, Solana’s transaction count has increased significantly, which could be interpreted as a sign of growing interest and potential future growth. However, this narrative takes a hit when considering the overall market activity. It appears that sellers have dominated the network, with $6.15 million worth of SOL being sold in the past 24 hours.
SOL Must Hold Crucial Support Level
Despite this selling pressure, Solana still maintains its bullish potential as long as it holds above a critical support zone on the chart. This area, ranging from $188.89 to $173.24, has historically been associated with significant buying pressure. If SOL breaches this level, there is a high likelihood of a deeper pullback.
Potential Rally Catalyst
In the event that Solana does hold onto this support level, it could potentially re-enter its previous consolidation phase and then rally back towards its previous all-time high and beyond. However, it’s crucial to emphasize that this bullish outlook remains uncertain without a corresponding increase in trading volume.
Conclusion
Source: ambcrypto.com
