Solana: Will Increased Selling Pressure Undermine SOL's Bullish Outlook?
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In the past week, Solana (SOL) has performed strongly, with a price increase of 7.09% and a 5.42% rise in the last 24 hours. However, despite bullish signs, the market activity and trading volume dynamics cast doubt on the sustainability of this trend.
Key Support and Trading Dynamics Analysis for SOL
Trading Surge but Selling Pressure Emerges
In the last 24 hours, the Solana network processed a total of 66.9 million transactions, indicating active market dynamics. However, exchange net flow data shows that despite a negative net flow (slightly favoring buying pressure), selling pressure remains dominant:
24-hour Selling Volume: $6.15 million.
7-day Selling Volume: $75.18 million.
Although buying pressure has pushed prices higher, the shrinking trading volume may weaken the continuation of this rise.
Disconnection Between Trading Volume and Price
The recent rise in SOL has not been accompanied by a significant increase in trading volume, which has actually decreased by 25%. This situation typically indicates that a short-term rebound may lack market support, making it susceptible to a pullback.
Key Support Areas and Technical Patterns
Technical charts show that SOL is currently within a key support range of $188.89 to $173.24. This area has historically been associated with strong buying interest:
Bullish Triangle Pattern: SOL is operating within this pattern, showing potential for upward movement in the short term.
If trading volume increases and supports price movement, SOL is expected to challenge the resistance level of $210.
SOL's Outlook: Bull-Bear Struggle
Bullish Factors
Technical Support is Solid: The key support area provides upward momentum for the price.
Buying Pressure Exists: Negative net flow indicates that buying activity still has support.
Bullish Triangle Remains Intact: There is still room for a rebound in the short term.
Bearish Factors
Shrinking Trading Volume: Insufficient market momentum may limit the rise.
Continued Selling Pressure: Significant sell-offs indicate a lack of market confidence.
Conclusion and Strategy
If SOL can hold above the $173.24 support level and trading volume increases, its bullish outlook will continue, with a target price potentially reaching $210 or higher. Otherwise, market pressure may lead to further price declines.
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