Solana [SOL]: Potential reversal signal after price pullback

Nod your head to live and watch the live broadcast to catch the bull market!

Solana (SOL) recently experienced a significant correction after setting an all-time high of $264.39. Its price has declined by 13.20% in the past month and was trading at $209.44 at press time. Despite its recent weakness, market data suggests that SOL may be on the verge of a bullish reversal.

Surge in deal activity: pressure or opportunity?

Daily transaction volume on the SOL network surged to nearly 67 million, a multi-month high, according to Artemis data. However, the 2.93% price drop came amid increased trading activity, possibly reflecting selling pressure. Technically, however, SOL has entered a strong support zone, a level that has historically attracted significant buying interest and could fuel a short-term price rebound.

Exchange outflows surge: A signal for long-term holders

SOL’s recent heavy outflows from exchanges suggest that holders may be moving assets to personal wallets, which is typically associated with long-term bullish sentiment. Over $264 million in SOL was withdrawn in the past 96 hours, with $46.26 million in outflows in the past 24 hours alone. This trend reduces spot supply on the market and helps prices stabilize.

Meanwhile, market funding rates are positive (0.0057%), indicating that long traders are paying to keep the market balanced, further reinforcing bullish confidence.

Liquidation trends and open interest support rebound

Trader sentiment is gradually turning positive in the short term, although long liquidations reached $21.35 million in the past 24 hours. In the last 4 hours, short liquidations reached $936,150, which is much higher than the long liquidations, reflecting the weakening confidence of the bears. The growth in open interest (+0.62% to total $3.52 billion) also points to increased expectations for higher prices.

Summary: The future trend of SOL

Support level: The current price is close to the key support area, which is expected to trigger a rebound.

Outflows: Exchange outflows continue to increase, reducing selling pressure.

Market Signals: Positive funding rates, increasing open interest, and short liquidation suggest bullish momentum is building.

If these trends hold, SOL could end its current pullback phase and move towards new highs.

Click on the avatar live and watch the live broadcast to catch the bull market!