Solana (SOL) recently rebounded 8.5% from a key support level at $143, sparking optimism across the market. But a closer look at volume, momentum indicators, and recent token flows suggests that the rally may not be as solid as it appears.

Key Levels: $143 Support and $162 Resistance

The $143 level has been tested multiple times since April, acting as a crucial support. The recent bounce reaffirms this, but until SOL breaks above the lower high at $162, a strong trend reversal remains uncertain.

Weak Momentum Despite Price Jump

• OBV (On-Balance Volume) continues to trend downward, suggesting limited accumulation.
• MFI (Money Flow Index) shows a slight uptick, but remains in a zone indicative of selling pressure.
• Trading volume has stayed low, hinting that the price increase lacks broad market participation.

Token Flow Signals Risk

Last week, 2.8 million SOL were transferred to Binance—likely for selling. This coincided with a 7% price drop from $155 to $143, suggesting institutional or whale-driven pressure.

Funding Rates Flip Positive

On June 8, futures funding rates turned positive, indicating a shift toward long positions. While this could signal growing confidence, it’s not yet supported by volume or trend confirmation.

Short-Term View: Volatile but Tradable

Solana may offer short-term trading opportunities for those watching key technical levels:

• Breakout above $162 could indicate a bullish shift.
• A dip below $143 could invite renewed selling.

Final Thoughts: Watch, Don’t Chase

Solana’s recent rally shows promise, but lacks conviction. Without strong volume and a break of resistance, the move might fizzle. For now, it’s a “watch and wait” scenario—ideal for short-term traders, but not yet a strong buy for trend investors.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always do your own research before making financial decisions.