Key Points:
- Centralized exchanges experienced a net inflow of SOL tokens exceeding $200 million last week, marking the highest since March.
- The peak in March corresponded with a price rally that halted near $200.
- Current market dynamics suggest that this inflow may cloud the previously bullish technical outlook.
A familiar pattern has reemerged in the SOL market, reminiscent of the price peaks seen in March 2024, casting shadows over its positive technical indicators. According to recent statistics, over $227 million in SOL, the token that fuels Solana's smart contract blockchain, moved to centralized exchanges in the past week—this is the most substantial influx since mid-March.
During the March surge, exchanges noted a net inflow of more than $300 million in SOL. This influx occurred just before the SOL price rally peaked around $200, leading to a seven-month period of price fluctuations between $120 and $200.
The movement of such a considerable volume of tokens to exchanges often signifies that holders might be preparing to either liquidate their holdings or trade them in derivatives or decentralized finance (DeFi) strategies.
Furthermore, recent trading activity in the SOL options market, as per the data analytics service Amberdata, displays a diminishment of bullish sentiment, with traders predominantly engaging in net sells of call options.
