✅ Solana (SOL) has once again proven that the $143 level is a key support zone. After revisiting this price point, it bounced back with an 8.5% gain – but the question remains whether this marks the beginning of a larger recovery.
🔹 Price Is Up, but Volume Remains Weak
Solana briefly broke above $152, offering a minor win for bulls. However, the broader market remains uncertain. The lack of strong trading volume accompanying this price rise is a red flag, suggesting hesitation among participants.
Last week, Binance saw a significant inflow of SOL tokens – a total of 2.8 million. This movement coincided with a drop in price from $155 to $143. Notably, the funding rate turned positive on June 8, signaling a potential shift in sentiment toward holding the token.
🔹 Technical View: Bears Still in Control
On the daily chart, Solana has been forming a bearish market structure since mid-May. The $143 support level – which also acted as a key zone in April – was successfully retested, leading to a swift 8.5% rebound. This suggests there is still demand at this level.
However, the Money Flow Index (MFI) at the time of writing showed continued selling pressure. The 20-day moving average of trading volume has also been steadily declining over the past two weeks. To see a move toward $178 or beyond, volume needs to pick up significantly.
🔹 OBV Yet to Confirm Bullish Momentum
The On-Balance Volume (OBV) indicator is still trending downward on both daily and 4-hour charts. On the 4H timeframe, a descending OBV trendline has yet to be broken. A breakout above the local OBV high from early June would be an early signal of buyer dominance.
That said, the MFI on lower timeframes has been rising for the past three days, aligning with the recent price recovery. This suggests a short-term bullish momentum is building. Still, the overall market structure on the 4H chart remains bearish.
🔹 Key Level to Watch: $162
During the decline from $178 to $143, Solana formed a lower high at $162. A break above this level could signal a shift in market structure and would likely encourage swing traders to enter long positions based on renewed bullish bias.
🧠 Summary:
Solana has bounced back after touching the $143 support level, but without strong volume, the recovery remains questionable. A move above $162 would serve as confirmation for bulls, but until then, caution is warranted – as the bearish structure still holds.
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