Solana (SOL) is currently in a downtrend and has lost about 20% of its value since January 19. However, signs of price recovery are emerging as the cryptocurrency experienced a positive capital inflow in February, indicating increased investor interest. According to Coinglass data, capital inflow into the Solana spot market reached $16 million yesterday, marking a significant increase in the past 10 days. This buying surge coincides with Solana’s efforts to stay above the critical $200 level. Capital inflow into the spot market usually signifies investor confidence or a positive market sentiment towards an asset. This buying increase shows that investors are willing to purchase Solana at its current price. Additionally, the Balance of Power (BoP) indicator confirms its positive status, indicating an increased buying pressure among traders. Currently, the indicator stands at 0.23, hinting at the accumulation trend of this cryptocurrency. In the daily chart, Solana is testing a key support area at the lower border of an ascending parallel channel that has been traded in over the past few months. Maintaining this level is crucial to strengthen the current upward trend. If Solana remains above this support, it may move towards $258.66 by attracting more buyers. However, breaking this support level would signal a weakening of the uptrend, potentially leading to a deeper correction and price decline to $113.88. Visit the live digital currencies price page to monitor the prices of all tokens and cryptocurrencies in real-time.
