Solana’s (SOL) Rally Depends on $211 Support Remaining Intact

Solana (SOL) price has seen a 9% increase in the past seven days, bringing its market cap back above the $100 billion mark, currently sitting at $103 billion. Despite this growth, SOL’s trading volume has decreased by 34% in the last 24 hours, standing at $2.4 billion.

Positive indicators such as its CMF and a recent golden cross support the bullish momentum. However, whether SOL can maintain its upward trajectory or face a correction depends on its ability to hold the crucial $211 support level.

Solana CMF Still High, Yet Shows Drop from Its Peak Levels

The Chaikin Money Flow (CMF) for Solana is currently at 0.23, reflecting positive capital inflows into the asset. The CMF measures the flow of money into and out of an asset over a given period, based on price and volume. Values above 0 suggest net buying pressure, while values below 0 indicate net selling pressure.

SOL CMF surged from nearly 0 on January 1 to 0.33 yesterday, signaling a strong influx of buying momentum during this period.

SOL CMF. Source: TradingView

At 0.23, SOL CMF remains in positive territory, indicating sustained buying interest, albeit at a slightly reduced intensity compared to its recent peak. This decline from 0.33 may suggest that buying pressure has cooled off slightly, potentially hinting at a period of consolidation or slower upward momentum for the price.

For SOL to maintain its bullish trajectory, the CMF would need to stabilize or rise again, reflecting renewed confidence among investors. However, a continued decline could signal weakening demand, increasing the likelihood of a price correction in the short term.

SOL Sellers Show Signs of Recovery

The Average Directional Index (ADX) for SOL has surged to 45, rising sharply from 10.8 just four days ago, signaling a strong trend formation. The ADX measures the strength of a trend on a scale from 0 to 100, where values above 25 indicate a strong trend, while values below 20 suggest weak or absent momentum.

This sharp increase in ADX confirms that SOL is currently in a solid uptrend, reflecting strong market activity and confidence in its price direction.

SOL DMI. Source: TradingView

The directional indicators provide further insight into the current trend. The +DI, which represents buying pressure, is at 27.5, although it has declined from 35.8 yesterday, signaling a slight reduction in bullish momentum. Meanwhile, the -DI, indicating selling pressure, has increased to 12.6 from 8.6, showing that bearish activity has risen slightly.

Despite these shifts, the uptrend remains intact, as the +DI is still significantly higher than the -DI, supported by the strong ADX. However, the decreasing +DI suggests that Solana bullish momentum might be stabilizing, and the market could enter a consolidation phase unless buying pressure reignites.

SOL Price Prediction: Can It Return to $246 Soon?

Solana price movement hinges on whether it can maintain the critical $211 support level. If this support is lost, SOL may enter a downtrend, with $203 as the next key level to watch.

A failure to hold above $203 could accelerate the decline, potentially pushing the price back to $185, reflecting a significant bearish shift in sentiment.

SOL Price Analysis. Source: TradingView

Conversely, the EMA lines remain bullish, signaling optimism for a potential upward movement. A golden cross formed just two days ago, reinforcing the possibility of sustained momentum.

If the $211 support holds, SOL price could rise to challenge the resistance at $221. Breaking through this level might pave the way for further gains to $229. If the bullish momentum strengthens, Solana price could target $246, representing a 16% upside from current levels.