Solana (SOL) $100M Outflow: Accumulation vs. Short Selling

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Oleg Dimitrov
2 February, 2025, 07:13
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Solana (SOL) Sees $100M Outflow as Price Hits Crucial Support—What’s Next?

February 2, 2024 – Despite the ongoing bearish sentiment in the cryptocurrency market, Solana (SOL) is attracting significant attention from investors as its price approaches a critical support level. Historically, SOL has shown strong reversals at similar levels, making this a potential turning point for the asset.

$100 Million SOL Outflow Signals Accumulation

According to on-chain data from CoinGlass, over the past 48 hours, cryptocurrency exchanges have recorded a substantial outflow exceeding $100 million worth of SOL tokens. This trend suggests that long-term holders and institutional investors might be accumulating the asset, anticipating a future price rebound.

Why This Outflow Matters

Large-scale outflows from exchanges typically indicate that investors are withdrawing their assets for long-term holding rather than selling them on the open market. This shift can reduce selling pressure, potentially setting the stage for a bullish reversal.

However, despite this accumulation by crypto whales, short-term traders are taking a different approach, capitalizing on the current market conditions with aggressive short positions.

Bearish Sentiment Among Traders

Market data reveals that short sellers are increasing their positions, betting on a continued downtrend.

$236.30: This level has become a major resistance, where short sellers hold $175.50 million in leveraged positions.
$223.00: Bulls hold $46 million in long positions, suggesting an ongoing battle between buyers and sellers.

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This data indicates a clear division in market sentiment—long-term investors see an opportunity for accumulation, while short-sellers are focused on short-term profit-taking.

Current Price Momentum: SOL Struggles Below Key Levels

As of this writing, SOL is trading at $224.15, marking a 3% decline in the last 24 hours. Additionally, trading volume has dropped by 20%, highlighting a decrease in overall market participation.

This decline aligns with the broader crypto market correction, where Bitcoin and other major altcoins are also experiencing downward pressure.

Solana (SOL) Technical Analysis: Breakdown or Rebound?

Bearish Pattern Formation

Technical analysts have identified a bearish inverted cup and handle pattern on the daily chart, which suggests a possible neckline breakdown if the price fails to hold above critical levels.

Key Support Level: $220 – A daily close below this level could trigger a 14% decline, bringing SOL down to its next major support at $190.
Reversal Scenario: If SOL holds above $220, the bearish outlook may be invalidated, and a rebound toward $236 could be possible.

What’s Next for Solana?

Bullish Case:

If SOL remains above $220, buying pressure could increase, pushing the price towards $236 and beyond.
Increased institutional accumulation could provide further support for an upward move.

Bearish Case:

A break below $220 could open the door for further downside, possibly testing the $190 support level.
If market sentiment remains bearish, short sellers may continue to dominate in the short term.

Final Thoughts

Solana is currently at a critical inflection point, with both bullish and bearish forces at play. While long-term investors appear to be accumulating, short-term traders remain skeptical, betting on a further decline.

With key technical levels in focus, the next 24–48 hours could determine whether SOL sees a strong rebound or continues its downward trajectory.