Solana (SOL) is at a critical period where there are significant discussions on the sustainability of its price and trading activity and the sustainability of its rise.

The recent increase in the number of transactions may be signaling a recovery for the network, but market trends suggest that continued selling pressure could make it difficult to make further gains.

"Solana's trading data looks positive, but overall selling activity suggests that buyers have not yet dominated the market," COINOTAG analysts commented.

The recent trading boom has been overshadowed by selling pressure, raising questions about the sustainability of the bullish momentum.

Increase in Transactions, But Sellers Still Dominant
The Solana network has seen a significant increase in transactions, processing 66.9 million transactions in the last 24 hours. This increase indicates that the asset is starting to recover from its previous decline. However, this increase in the number of transactions can indicate a tendency for market participants to buy or sell. To clearly identify the trend, COINOTAG analyzed Solana’s Exchange Net Flow.

Stock Net Flow is an indicator that measures the difference between inflows and outflows in stock markets. A positive net flow indicates increasing selling pressure, while a negative net flow indicates dominant buying pressure.

As of now, Solana’s Stock Net Flow is negative on both the daily and weekly timeframes, meaning that selling is outpacing buying.

$6.15 million worth of SOL was sold in the last 24 hours and $75.18 million worth of sales were made in the last week. However, despite the observed buying pressure, the 5.42% price increase in the last 24 hours is a weak outlook.

Volume Drop Questions Rally Sustainability
A more detailed analysis of the volume shows a 25% decrease, indicating that the recent rally lacked market momentum. Usually, price increases are accompanied by a decrease in volume, indicating that a temporary rise is possible without strong market support.

Solana could be at risk of a deeper pullback unless it sees a strong increase in volume to support its price action.

SOL Maintains Upside Potential Despite Pressure
Solana has entered a critical support area on the chart and is trading inside an ascending triangle structure. This support level ranges from $188.89 to $173.24 and has historically been associated with significant buying pressure, but no such activity is currently observed. If SOL breaks out of this support area, it is likely to re-enter the previous consolidation phase.

If this support level proves to be a catalyst for a rally, Solana could experience a significant rally, which could send SOL reaching previous all-time highs and perhaps even higher.