The cryptocurrency market has already seen better days than last week, but Solana price has had particular difficulties in dealing with the widespread downward pressure. This slow price movement can be linked to Major DeFi Exploit That shook the ecosystem, causing more than $270 million to flow abroad. According to the latest on-chain data, Solana’s price may see further pressure as exchange inflows rise.
$110 million in SOL flows to central exchanges in 3 days
In an April 4 post on social media platform X, cryptocurrency analyst Ali Martinez said subscriber Large amounts of Solana token have been transferred to centralized exchanges over the past few days. This on-chain observation triggered a cautionary alert about SOL’s potential price path, especially given the already less than optimistic market climate.
The relevant indicator here is the exchange balance metric, which tracks how much of a given cryptocurrency is available on centralized exchanges at a given time. This on-chain metric provides some level of insight into the current supply and demand dynamics in the open cryptocurrency market.
Hence, a rise in the value of this measure indicates that more market participants are sending assets to exchanges, which may imply that supply may outstrip available demand. This trend may be bearish for the value of the asset (Solana price, in this case), as it may be an indication of increasing selling pressure.
Source: @alicharts on X
According to Glassnode data highlighted by Martinez, 1.40 million Solana, worth approximately $110 million, were transferred to centralized exchanges in the past 72 hours. As previously concluded, currency movements of this magnitude are often red flags in the market, as they can be potential Source of downward pressure On the price.
The rationale behind this conclusion is that one of the main services provided by centralized exchanges is a platform for investors and traders to offload their digital assets. Hence, this recent increase in exchange flow can be linked to higher selling pressure on the Solana price.
Solana price at a glance
Interestingly, Solana price fell below the psychological support level of $80 after hitting a local high of around $85. As of this writing, SOL is at around $80.8, reflecting no significant change over the past 24 hours. According to CoinGecko data, the value of the altcoin has fallen by more than 3% in the past seven days.
The price of Solana on the daily timeframe | Source: SOLUSDT chart on TradingView
Featured image from Shutterstock, chart from TradingView
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