Solana's Surge: $25M SOL Outflow Sparks Upside Rally

Solana, the high-speed blockchain platform, has been making waves in the crypto market, with a significant shift in investor sentiment and trading activity. After a recent price drop of over 25%, Solana (SOL) is now poised for a massive upside rally, as indicated by its bullish price action pattern on the four-hour timeframe.

On-chain analytics firm Coinglass has revealed that as SOL's price reached the crucial support level of $190, exchanges across the decentralized finance (DeFi) ecosystem witnessed an outflow of over $25 million worth of SOL tokens. This substantial outflow from exchanges suggests potential accumulation, which could create buying pressure and upside momentum for SOL.

Currently, SOL is trading near $197 and has surged 1.50% in the past 24 hours. However, these price gains appear to be steadily increasing, indicating a bullish shift in market sentiment. During the same period, its trading volume dropped by 40%, suggesting lower participation from traders and investors compared to previous days.

Intraday traders are betting on the long side, as revealed by Coinglass data. At press time, traders holding long positions are over-leveraged at $188.8, believing that SOL's price will not fall below this level. They have opened long positions worth $90.50 million. Conversely, $197.50 is another key level where traders holding short positions are over-leveraged, currently holding $33.70 million in short positions.

According to expert technical analysis, SOL is at a crucial support level of $189, aligning with the 200 Exponential Moving Average (EMA) on the daily timeframe. The asset is poised for a breakout above the descending trendline resistance, which it has been facing since January 20, 2024. Based on recent price action, if SOL breaches this resistance level and closes a four-hour candle above $200, there is a strong possibility it could soar by 15% to reach $230 in the near future.