Solana stays below sustained strain as broader market situations deteriorate. SOL has prolonged its downtrend for a number of weeks, reflecting lowered investor confidence.
Current on-chain information reveals a surge in exchange-directed provide. Roughly $202 million value of SOL has moved to buying and selling platforms because the starting of the month. This wave of promoting has intensified bearish momentum and revived capitulation indicators not noticed since 2022.
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Solana Holders Are Promoting
Lively deposits on the Solana community have began declining after a pointy rise earlier this month. This metric tracks tokens transferred to exchanges, usually signaling intent to promote.
Regardless of moderating deposit flows, trade balances proceed to replicate elevated provide. Over the previous 17 days, trade wallets have added 2.35 million SOL. At present costs, this improve equates to roughly $202 million in extra sell-side liquidity.
Solana Stability On Exchanges. Supply: Glassnode
Rising trade reserves typically amplify downward strain. Bigger balances make it simpler for merchants to execute promote orders. Nonetheless, this inflow has additionally triggered a historic capitulation sign. Comparable spikes in trade provide beforehand aligned with late-stage bear market situations.
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The MVRV Pricing Bands present vital valuation context. Solana’s value is at the moment buying and selling beneath the Excessive Lows deviation band. For this classification, the Market Worth to Realized Worth ratio should keep beneath 0.8 for roughly 5% of buying and selling days.
SOL Worth Downtrend Continues
Solana is buying and selling at $86 on the time of writing. The token stays capped beneath the $90 resistance whereas holding above the $81 help zone. A transfer above $90 would intersect the prevailing downtrend line, signaling potential technical enchancment.
Nonetheless, present information suggests draw back threat persists. Continued trade inflows and weak macro momentum might strain SOL additional. A decisive break beneath $81 might expose the subsequent help close to $67, extending the drawdown.
Alternatively, reclaiming $90 would shift short-term sentiment. A breakout above the descending trendline might appeal to renewed capital inflows. If momentum strengthens, SOL might rally towards $105 and doubtlessly increased, invalidating the prevailing bearish thesis.
