Solana has been on a ride lately, shedding nearly 20% of its value since closing at $252.42 on January 19. However, the tide may be turning as the coin records its first major spot inflow in February, signaling renewed investor interest and potential bull run. Let's go to details and see what this means for Solana's future.
Solana Bulls Attempt a Comeback
According to Coinglass, SOL's spot market inflows reached 16 million on Monday, marking its first significant inflow in 10 days. This renewed buying interest comes as SOL attempts to hold above the critical 200 level. Spot inflows often indicate investor confidence or a positive shift in market sentiment, suggesting a rise in demand for SOL as buyers are willing to acquire it at the current market price.
Furthermore, the coin's positive Balance of Power (BoP) confirms this resurgence in buying pressure among market participants. At press time, the momentum indicator is at 0.23, reflecting the accumulation trend. The BoP measures the strength of an asset's buyers against its sellers, and a positive BoP indicates buyers are in control, suggesting upward momentum and potential price appreciation.
SOL Price Prediction: Holding This Support Could Spark a Rally
On the daily chart, Solana tests a key support zone formed at the lower boundary of an ascending parallel channel it has traded within for several months. Holding this level is crucial, as maintaining support could reinforce its current bullish momentum and strengthen the ongoing uptrend. If SOL stays above this support, it may attract further buying interest and push toward $258.66.
However, a break below this line would signal weakening momentum, potentially leading to a deeper pullback to 113.88. Solana's recent drawdown, dropping below the 200 mark earlier this week, comes amid broader market volatility, leaving investors uncertain about the altcoin's next move.
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Solana Investors Are Uncertain
The Net Unrealized Profit/Loss (NUPL) indicator has fallen into the Fear zone, retreating from the Optimism zone. This shift suggests that investor sentiment has weakened, contributing to increased selling pressure. Historically, similar dips into the Fear zone have often preceded price reversals, signaling potential recovery.
If past trends hold, Solana could see a rebound in the coming days. Previous instances of NUPL dropping to these levels have triggered renewed buying interest, supporting price recoveries. A shift in sentiment could provide the momentum needed for SOL to reclaim lost ground and reestablish bullish momentum.
Solana's Chaikin Money Flow (CMF) indicator has dropped to an 18-month low, reflecting a surge in outflows and marking the strongest capital flight from the asset since August 2023. Increased selling activity suggests that investors remain skeptical, impacting SOL's ability to sustain upward price movements.
SOL Price Prediction: A Rise Ahead
Solana's price has climbed 6% over the last 48 hours. While this represents a minor recovery, it remains insignificant compared to the 27% decline the altcoin suffered over the past three weeks. More bullish momentum is needed for SOL to establish a sustained uptrend.
Currently trading at 202, Solana has successfully reclaimed the 200 support level. This threshold is crucial in determining the asset's short-term trajectory. If SOL manages to push past $221, it would confirm that recovery has begun, increasing the likelihood of further gains.
However, if investor skepticism persists, Solana could face renewed selling pressure. A drop below the $183 support level would invalidate the bullish outlook, leading to extended losses. The coming days will be critical in determining whether SOL can sustain its recovery or succumb to further declines.
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