Solana has declined since closing at $252.42 on January 19, losing almost 20% of its value.
However, a recovery might be in the works when the coin records its first spot inflow in February, indicating fresh investor interest. The details are in this analysis.
The Bulls of Solana Try to Make a Comeback
SOL saw its first significant inflow in ten days on Monday, with spot market inflows totaling $16 million, according to Coinglass. As SOL tries to maintain above the crucial $200 mark, there is a renewed interest in buying.
Spot inflows frequently indicate a possible improvement in market sentiment toward the asset or investor confidence. An increase in the acquisition of an asset in the spot market, when deals are finalized instantly, is indicated by spot inflows.
Because customers are willing to purchase SOL at the present market price, this trend indicates that demand for the product is increasing.
The coin’s positive Balance of Power (BoP) also attests to the market participants’ renewed buying pressure on SOL. The accumulating tendency is reflected in the momentum indicator at 0.23 at the time of writing.
By analyzing price changes over a specified period, the BoP calculates the strength of an asset’s buyers relative to its sellers. A positive BoP suggests upward momentum and a possible price rise because it shows that buyers are in control.
Price Forecast for SOL: Maintaining This Support Could Lead to a Rally
Solana is testing a crucial support zone on the daily chart created at the lower edge of an ascending parallel channel in which it has been trading for several months.
It is imperative to hold this level since doing so could strengthen the current upswing and reinforce the bullish momentum. SOL might draw more buying interest and move toward $258.66 if it maintains its position above this support.
However, a break below this barrier would indicate waning momentum and trigger a more significant decline to $113.88.
