In summary:
Solana has seen $16 million in spot inflows, the first in 10 days, signaling renewed investor confidence and potential bullish momentum.
The positive Balance of Power (BoP) at 0.23 indicates buyer control, reinforcing accumulation and upside potential.
The crucial $200 support level is critical; holding above it could propel SOL to $258.66, while a breakdown could lead to a decline towards $113.88.
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Solana (SOL) is on a downtrend, having lost nearly 20% of its value since closing at $252.42 on Jan. 19.
However, a recovery could be underway as the coin recorded its first inflow of February, suggesting renewed investor interest. This analysis provides further details.
Solana Supporters Return
According to Coinglass, SOL saw $16 million in spot inflows on Monday, marking the first major inflow in 10 days. This renewed buying interest comes as SOL attempts to hold above the crucial $200 level.
Inflows into the spot market often indicate investor confidence or a positive shift in market sentiment toward an asset. When an asset experiences spot inflows, it signifies an increase in buying activity in the spot market, where trades are settled immediately. This trend, therefore, suggests rising demand for SOL, as buyers are willing to purchase it at its current market price.
Furthermore, the coin’s positive Balance of Power (BoP) confirms the increase in buying pressure for SOL among market participants. At the time of writing, the momentum indicator stands at 0.23, reflecting an accumulation trend
The BoP measures the strength of buyers relative to sellers in an asset by comparing price movements over a specific period. A positive BoP indicates that buyers are in control, suggesting upward momentum and the potential for a price increase.
SOL Price Prediction: Holding This Support Could Fuel a Rally
On the daily chart, Solana is testing a crucial support zone formed at the lower boundary of the ascending parallel channel within which it has been trading for several months. Holding this level is critical, as maintaining support could solidify the current bullish momentum and reinforce the ongoing uptrend. If SOL holds above this support, it could attract further buying interest and propel the price towards $258.66.
However, a breakdown below this line would signal weakening momentum, potentially leading to a deeper decline toward $113.88.
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