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Solana: Will THIS derail SOL’s bullish outlook?
A recent surge in transaction counts and buying pressure has sparked questions about the sustainability of Solana’s (SOL) bullish momentum. A closer examination of market activity suggests that sellers may have dominated, threatening to derail the asset’s upbeat trajectory.
In the past 24 hours, a significant 66.9 million transactions were executed on Solana’s network, indicating a substantial increase in activity. However, this uptick in transactions does not necessarily indicate a shift in investor sentiment towards buying pressure. Analysis of Exchange Netflow data reveals that $6.15 million worth of SOL has been sold in the past 24 hours, while $75.18 million was sold over the past seven days.
The negative netflow on both daily and weekly timeframes suggests that buying activity is currently outpacing selling pressure, but this dynamic could quickly shift if sentiment turns bearish.
Despite this, a concerning trend has emerged: trading volume has dropped by 25% in the last day. This lack of market momentum raises concerns about the sustainability of SOL’s price surge over the past 24 hours.
In the event that Solana fails to increase its trading volume in support of its rally, the asset may be at risk of a deeper pullback. If this occurs, it would likely result in a re-entry into the consolidation phase recently exited.
On the other hand, if SOL manages to hold onto the current support zone between $188.89 and $173.24, it could potentially regain its former trajectory and push towards its previous all-time high or beyond.
It is crucial that investors closely monitor Solana’s price action in the coming days as this support level serves as a critical pivot point for the asset’s future performance.
The writer holds a position in SOL.
Source: ambcrypto.com
