Solana (SOL), a cryptocurrency that has gained significant attention in the past year, recently hit new highs before experiencing a retracement of 18.18% over the last month. Despite this pullback, the cryptocurrency has shown some signs of recovery, with a 7.09% increase in the past week and a 5.42% rise in the last 24 hours. But as Solana’s price fluctuates, there are concerns about whether this bullish trend can continue.

A Surge in Activity, But Sellers Are Still in Control

One of the key factors contributing to Solana’s recent price movements is a surge in network activity. Over the last 24 hours, the Solana network processed a staggering 66.9 million transactions. While this increase in activity typically signals growing interest in the asset, it doesn’t necessarily indicate that the market sentiment is bullish.

To understand whether this surge is driven by buying or selling, we need to look at Solana’s Exchange Net flow. This metric measures the difference between the amount of Solana being deposited to exchanges (which could signal selling) and the amount being withdrawn (which could signal buying). At the moment, Solana’s Exchange Net flow is negative, meaning more people are selling than buying.

In the past 24 hours, $6.15 million worth of SOL was sold, and in the past week, that figure rose to $75.18 million. This suggests that despite the price surge, selling pressure remains a concern for the asset.

Price Surge Lacking Strong Support

Solana’s recent price increase of 5.42% in just 24 hours might seem impressive, but there’s a catch. Trading volume has decreased by 25%, a typical sign that the rally may not have enough momentum to sustain itself. A price increase without a corresponding rise in trading volume often indicates that the rally could be short-lived.

For a price surge to be sustainable, there needs to be a strong, consistent demand in the market. Without this support, Solana’s price may face a pullback, even after the recent uptick.

Key Support Levels: The Make-or-Break Point

Looking at Solana’s price chart, the cryptocurrency is currently trading within a bullish triangle pattern. This structure indicates that the price could either continue rising or experience a reversal, depending on whether it holds key support levels.

Solana’s crucial support zone lies between $188.89 and $173.24. Historically, this has been an area where buying pressure has been strong. If Solana can maintain its position above this support zone, it could potentially drive a rally that takes it toward its previous all-time high.

However, if Solana falls below this support zone, the cryptocurrency could enter a period of consolidation. This would mean that the bullish momentum could stall, and the price may struggle to push higher in the near term.

What’s Next for Solana?

While Solana’s price surge has been encouraging, there are still a lot of uncertainties surrounding its future movements. Despite the recent rise in price, selling pressure remains a significant factor, and the drop in trading volume suggests that the market might not be fully behind this rally.

The next few days will be critical for Solana. If it can maintain its position above the key support levels, it may continue its bullish trend. However, if the support zone is breached, the price could experience a pullback or enter a period of consolidation.

Conclusion

Solana has shown impressive growth over the past few months, but it faces challenges that could derail its bullish momentum. The cryptocurrency’s price surge is accompanied by concerns about selling pressure and low trading volume. As Solana trades near critical support levels, the next few days will be crucial in determining whether the bullish trend will continue or if a correction is on the horizon. Traders and investors will need to monitor these levels closely for signs of either strength or weakness in the market.