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While Solana (SOL-PKR) has rallied nearly 10% over the past week, underlying metrics suggest that the uptrend may be running out of steam, raising the possibility of a pullback.
According to a recent analysis, weakening liquidity and declining network activity point toward a potential reversal.
The report highlights a bearish divergence. The Chaikin Money Flow (CMF) indicator, which tracks the volume of money flowing into and out of an asset, has dropped below zero at –0.06 even as SOL continues upward. Experts now think that capital inflows are diminishing even as price rises which is a classic warning sign.
At the same time, new address growth on Solana’s network has slumped by 15% since mid-September, according to on-chain data from Glassnode. Fewer new users and decreased engagement tend to foreshadow weaker demand ahead.
SOL’s price has been moving within an ascending parallel channel, typically a bullish pattern. In a continued upward scenario, analysts see a potential target near $253.66. But if the weakness intensifies, a break below the lower bound of the channel could drag price toward $205.02.
The report frames this as a tug-of-war between momentum and underlying strength. If buyers retreat, the rally may falter.
Some investors and analysts warn that bear traps like this can lure overconfident buyers into exposure just before a reversal.
