Behind Solana's rebound, undercurrents are surging: big funds are returning, and $120 has become the critical threshold between bulls and bears

February 3 News, Solana experienced a technical correction after a sharp sell-off. Over the past seven days, SOL has declined approximately 15.5%, and during the market turbulence from late January to early February, it briefly touched a low of $95.87. Subsequently, the price found support and rebounded nearly 8%, currently climbing back to around $103, indicating that short-term selling pressure is weakening.

On-chain and capital indicators are sending key signals. After completing the downside target of the daily head and shoulders pattern, the Chaikin Money Flow indicator has moved contrary to the trend, forming a classic bullish divergence. This suggests that large funds are beginning to accumulate in the $95–96 range. The indicator is approaching the zero line, and once it turns positive, it will mean that buying strength is starting to dominate the short-term trend.

The behavior of long-term holders also supports the rebound. Activity indicators continue to decline, indicating that old chips are not being sold off on a large scale, and market panic is limited. However, short-term speculative capital is increasing. HODL Waves show that addresses holding for 1 day to 1 week are rising, reflecting more short-term traders entering the market, which could lead to increased volatility later on.

From a technical perspective, the $95.87–96.88 zone is the most critical support area. If broken, SOL could re-target $77. The first resistance above is at $103.60, with the real bull-bear dividing line at $120.88. This level coincides with the 20-day EMA and previous key highs, historically triggering strong rebounds.

If SOL can effectively hold above $120, the market may refocus on $128 or even $148; conversely, if trading volume remains insufficient, the short-term rally could quickly cool down. Moving forward, capital flow and the stability of long-term holders will determine whether Solana can complete a trend reversal.