Solana [SOL] Binance is under new pressure from a whale that has stopped staking 300,439 SOL valued at $26.1million and sent it to Binance. The move raised fears of a possible supply shock. Similar reactivations in the past have often been aligned more with distribution than long-term ownership.
This wallet was inactive for over ten month, increasing the chances that it would be compromised. this movement reflected profit-taking behavior. The sudden inflow of tokens to a central exchange raised immediate concern about an increase in sell-side liquidty.
If not properly absorbed, this behavior could have an impact on short-term stability of prices.
Persistent inflows keep pressure elevated
Solana flows were consistent despite the activity of whales.
Netflows were consistently positive with the last reading at around $20.88m, which reinforced a constant increase in supply held on exchange. These conditions indicated a rising availability of sells as tokens were moved out of private wallets and into trading environments.
These flows suggest that participants in the market have gradually increased their willingness to sell, rather than reflecting an accumulation.
Solana, who is a range bound Solana, meets with neutral RSI Pressure
Solana After its abrupt breakdown, the price remained within a range defined by the support of $78.50 and resistance of $97.72. Asset traded in the mid-range, but without any clear direction. The attempts to claim $97.72 have consistently failed. This reinforces the zone as a significant resistance.
The buyers repeatedly defended $78.50 as a support, which prevented further losses, even though the inflows were persistent. The price continued to respect both boundary lines without trying to regain higher structure.
As of press time, RSI mirrored the structure and was stabilizing at 49.74, while Moving Average hovered around 51.80. This reflected a neutral state in the market. The sideways movement of prices was a result of this positioning, as neither the buyers nor the sellers were in control.
Indicator failed to gain strength after recovering from lower lows. Further downside is possible if the price falls below $78.50. A sustained rise above $97.72 will shift the structure in favor of recovery.
Do leveraged Longs have a growing influence?
As of the date this article was written, derivative data revealed a positive shift in positions. The shift in the market indicated that short-term traders were now being paid by long traders. This reflected a bias towards bullish positions.
This increase in exposure to long-term markets has not led to a significant price recovery. If funding became positive, but prices did not increase, this often indicated that positions on long-term investments had crowded.
If the market moves against the seller, this condition can increase the likelihood of a long-term liquidation.
How can Solana handle this pressure on supply?
The selling pressure was high as the supply of commodities continued to enter exchanges. However, prices stayed within a range.
Positioning had been skewed towards longs with a weak structure, but buyers did not have a strong grip on the market. As inflows increased and the whales were more active, this imbalance indicated that there was a greater vulnerability than support for the market.
Due to this set-up, SOL is more likely to move towards a downward pressure, within its range, than to stage a prolonged recovery. The current structure, which favors weakness, would be the most likely outcome.
Final summary
- SOL’s supply is boosted by steady deposits of whales and inflows.
- The neutral RSI and the positioning of long reflect a loss of confidence, which reinforces current consolidation.
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Source: ambcrypto.com
