Solana recorded over $16 million in daily spot transaction inflow.
Solana remains above $200 price mark but headwinds lies ahead.
The growth of memecoins on the protocol might help revamp its overall growth momentum.
Solana has seen better days despite the broad market volatility in February. Since it reached $294 on January 19, the asset has lost nearly 30% of its value. CoinGlass data over the past few days, but a recent market shift suggests that a turnaround is coming.
For the first time in February, Solana recorded a notable spot inflow, a sign of positive changes among buyers. The increase in buying interest could give SOL the boost it needs to recover.
Solana Spot Inflows: A Sign of Growing Confidence
On-chain data revealed that Solana’s spot market inflows reached $16 million on Monday. This marks its first major inflow in 10 days, a clear sign of renewed interest from investors. Notably, spot inflows are estimated when investors buy an asset at its current market price.
Solana Spot Inflow. Source: Coinglass
This suggests that buyers are confident in Solana and are willing to purchase it at the current price, helping to lift its value. Alongside these inflows, Solana’s Balance of Power (BoP) indicator is showing signs of strength.
With a reading of 0.23, the BoP reveals that buying pressure is growing more than selling. This suggests that buyers are in control of the market movement. Analysts believe if this trend continues, it could strengthen bullish momentum and drive SOL to higher prices.
This is because a positive BoP usually supports the idea of a potential price increase. This makes it a key signal to watch for future gains.
Right now, Solana is testing a key support level at the bottom of an upward trend it has been following for months. If the price stays above this support, it could boost the current upward trend.
This might lead to more buying trades and likely push Solana’s price towards $258.66. However, if the price drops below this support, the trend could slow down, and the digital asset might fall further to $113.88.
Solana is currently trading at $204.14, up by 0.96% in the last 24 hours as per market data. The market is at a crucial point and investors are watching these levels closely as Solana fights to maintain its upward trend.
Meme Coins and Market Sentiment
Solana’s recent growth and increased investors are part of a larger crypto trend.
Solana blockchain has become popular as many entities now launch their tokens on the network. Coinspeaker earlier that the Central African Republic had introduced its meme coin called CAR. This comes after the Solana protocol played host to meme coins like TRUMP and MELANIA tokens.
Notably, Bitcoin’s performance often helps boost optimism for digital assets like Solana. As Bitcoin leads the market, it aids liquidity and investor confidence in the altcoin market while performing optimally.
As by Coinspeaker, Bitcoin price is holding strong, and if it continues to show resilience above key support, its correlation could trigger a rebound for altcoins like Solana.