Solana has been on a downward trend, losing nearly 20% of its value since closing at $252.42 on Jan. 19.

However, a recovery may be underway as the coin records its first spot inflow in February, signaling renewed investor interest. This analysis provides the details.

Solana bulls attempt a comeback

According to Coinglass, inflows into the SOL spot market reached $16 million today (10), marking its first major inflow in 10 days. This renewed buying interest comes as SOL attempts to hold above the key $200 level.

Spot inflows usually signal investor confidence or a potential positive shift in market sentiment towards the asset. When an asset experiences spot inflows, it means an increase in buying of that asset in the spot market, where transactions are settled immediately.

Therefore, this trend suggests an increase in demand for SOL, as its buyers are willing to purchase it at the current market price.

Furthermore, the coin’s positive Balance of Power (BoP) confirms this resurgence in SOL buying pressure among market participants. At the time of publication, the momentum indicator is at 0.23, reflecting the accumulation trend.

SOL Price Prediction: Holding this support could trigger a rally.

On the daily chart, Solana is testing a key support zone formed at the lower border of an ascending parallel channel in which it has been trading for several months.

Holding this level is crucial as holding the support could reinforce its current bullish momentum and strengthen the ongoing uptrend. If SOL remains above this support, it could attract more buying interest and push towards $258.66.

However, a break below this line would signal weakening momentum, potentially leading to a deeper correction towards $113.88.