TLDR
- Solana’s exchange supply dropped by 2.2 million SOL over the past ten days.
- The withdrawn SOL is valued at approximately $381 million.
- Accumulation indicates growing confidence in Solana’s long-term potential.
- Bollinger Bands show narrowing, suggesting an upcoming surge in volatility.
- Solana is trading near critical support at $173 and must break $178 to confirm a rally.
Solana’s (SOL) on-chain metrics indicate a shift, as traders withdrew 2.2 million SOL from exchanges in ten days. This movement, worth around $381 million, signals strong accumulation during sideways price action. Despite limited volatility, market sentiment remains bullish and points to the possibility of an impending breakout.
Solana Supply on Exchanges Falls Sharply
Over the past ten days, the total Solana balance on exchanges dropped by 2.2 million SOL. This substantial reduction, valued at $381 million, indicates a significant accumulation trend. As supply shrinks on exchanges, market participants appear more inclined to hold the token.
The lower supply contributes to a tighter market structure as fewer tokens are available for sale. While price movement has remained limited in May, this decline in exchange supply shows a growing preference to store Solana off-platform. Such behavior typically aligns with expectations of future price appreciation.
In addition, the broader crypto market has shown strength, which likely supports the ongoing Solana accumulation. The move is partly influenced by positive momentum and the fear of missing out. These factors combined could drive increased demand and pressure the price higher.
Technical Indicators Signal Imminent Volatility
Technical data reflects that Solana may be nearing a critical point of volatility. Bollinger Bands have narrowed significantly, signaling a potential price squeeze. This pattern often precedes large movements in either direction.
A squeeze typically indicates that volatility will soon return, which could favor a breakout if supported by momentum. If Solana maintains strength and breaks above resistance, it could initiate a new upward trend. The market now watches for confirmation of this signal in the coming sessions.
Solana trades at $173 and is testing an important support level. A move above $178 would be necessary to shift the trend toward a bullish setup. Breaking $180 and then $188 would further validate a possible uptrend and build market confidence.
Key Levels Define Potential Breakout or Breakdown
Solana must hold $173 to prevent a shift toward bearish price action. If it secures $178 as support, it could rally above $180. The next major level at $188 would start a clear bullish structure.
If SOL price fails to hold these levels, the price could fall toward $168, with $161 as the next key support zone. A decline below these levels would suggest the bullish scenario is invalidated. Such a move may result in extended sideways movement or further downside.
In summary, traders have accumulated $381 million worth of Solana, reducing exchange supply and tightening technical indicators. While the price remains stable, key support and resistance levels will determine whether Solana initiates a breakout. The coming days could be crucial for Solana’s next market direction.
