$202 Million Solana Outflows Trigger First Capitulation Signal Since 2022
Solana stays below sustained stress as broader market circumstances deteriorate. SOL has prolonged its downtrend for a number of weeks, reflecting decreased investor confidence.
Recent on-chain knowledge 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 alerts not noticed since 2022.
Solana Holders Are Selling
Active deposits on the Solana network have started declining after a pointy rise earlier this month. This metric tracks tokens transferred to exchanges, typically signaling intent to promote.
Despite moderating deposit flows, change balances proceed to replicate elevated provide. Over the previous 17 days, change wallets have added 2.35 million SOL. At present costs, this improve equates to roughly $202 million in further sell-side liquidity.
Want extra token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
Rising change reserves usually amplify downward stress. Larger balances make it simpler for merchants to execute promote orders. However, this inflow has additionally triggered a historic capitulation sign. Similar spikes in change provide beforehand aligned with late-stage bear market circumstances.
The MVRV Pricing Bands present crucial valuation context. Solana’s price is currently buying and selling under the Extreme Lows deviation band. For this classification, the Market Value to Realized Value ratio should keep under 0.8 for roughly 5% of buying and selling days.
SOL has remained beneath that threshold for 26% of current classes. This confirms a protracted undervaluation section. The solely comparable occasion occurred in May 2022. Following that interval, Solana remained depressed for 17 months earlier than staging a significant restoration.
SOL Price Downtrend Continues
Solana is trading at $86 on the time of writing. The token stays capped under the $90 resistance whereas holding above the $81 help zone. A transfer above $90 would intersect the prevailing downtrend line, signaling potential technical enchancment.
However, present knowledge suggests draw back threat persists. Continued change inflows and weak macro momentum may stress SOL additional. A decisive break under $81 might expose the following help close to $67, extending the drawdown.
Alternatively, reclaiming $90 would shift short-term sentiment. A breakout above the descending trendline may appeal to renewed capital inflows. If momentum strengthens, SOL may rally towards $105 and probably greater, invalidating the prevailing bearish thesis.
The publish $202 Million Solana Outflows Trigger First Capitulation Signal Since 2022 appeared first on BeInCrypto.
