Solana sell-off triggers $468 million outflow as support weakens near $154

Solana (SOL), once considered one of the leading Ethereum rivals, is now facing a deepening liquidity crunch as investors dump their holdings in response to stagnant price action and negative market sentiment.

In just the last three days, around 3 million SOL—valued at over $468 million—have been transferred to exchanges, highlighting a broader shift in investor behaviour towards caution and capital preservation.

The sell-off gained pace after SOL briefly fell to $150 last week, marking a new intraday low for the month.

Although prices have since bounced back slightly, trading around $157.36 at the time of writing, the general trend remains clouded by bearish momentum and weakening technical indicators.

Source: CoinMarketCap

Sentiment weakens as support tested

The sudden rise in exchange balances has triggered concern across the market. Analysts have flagged the spike in outflows as a warning that confidence in Solana’s short-term price recovery is deteriorating.

The Chaikin Money Flow (CMF), a key metric that tracks capital inflows and outflows, has remained below the zero line, further confirming that selling pressure continues to dominate.

This trend aligns with a broader mood of risk aversion in the altcoin market. With volatility decreasing and no major positive catalysts in sight, investors appear to be exiting their positions to avoid deeper losses.

The shift to exchanges suggests that these are not just routine portfolio rebalances but deliberate liquidation moves, aimed at locking in gains or reducing exposure.

Price at $157.34 near critical support

At $157.34, Solana remains marginally above its critical support level at $154. A fall below this threshold could trigger further downside, potentially pushing the price down to $144.

That would mark an 8.5% drop from current levels and further extend Solana’s month-long downtrend.

The token’s correlation with Bitcoin, currently at 0.75, provides some hope for a rebound if broader crypto markets turn green.

However, this correlation may not be enough to overcome the strong internal headwinds currently facing Solana.

Without a clear reversal in capital flows or a fundamental development to renew interest, upward momentum is likely to remain subdued.

Despite this, there is still a potential recovery path. Should SOL find strong buying support at $154 and reclaim the $161 level, it may rally to $168 in the near term.

Such a bounce would indicate a shift in sentiment and could mark the end of the current sell-off.

However, that scenario would require a change in market dynamics and stronger risk appetite among investors—conditions that are currently lacking.

Trend depends on broader crypto

Solana’s current challenges are not unique in the altcoin space. Several Layer-1 networks have seen similar cycles of hype followed by consolidation, particularly when market-wide liquidity tightens.

What sets Solana apart is the scale of recent capital flight, which suggests that major stakeholders are losing conviction, at least in the short run.

If the pressure continues, Solana may face an extended period of sideways trading or further declines, especially if Bitcoin and Ethereum remain range-bound.

Alternatively, if the macro environment improves, through stronger inflows into digital assets or renewed institutional interest, SOL could be among the first altcoins to benefit due to its established ecosystem and prior price resilience.

However, for now, investors are closely watching whether Solana can defend the $154 mark.

A decisive break below could signal the start of a deeper correction, while a rebound may offer temporary relief but would need sustained inflows to build any meaningful rally.

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