The primary asset of the Solana 
$185 network, SOL coin, is currently challenged by significant market dynamics that could lead to a peak price in March 2024. Recently, a notable net inflow of $227.21 million in SOL to centralized exchanges was recorded. This influx is viewed as a potential risk factor that could overshadow the positive technical outlook for the popular altcoin.
Exchange Inflows May Signal Direct Selling Pressure
Data provided by Coinglass indicates that the recent large inflows to exchanges resemble a similar movement from March 2024. During that time, over $300 million net entered exchanges for SOL coin, driving its price up to $200. However, this peak resulted in a subsequent seven-month period of price stagnation. There are now concerns that a similar scenario could be repeated.
High-volume cryptocurrency transfers to exchanges often indicate that investors are considering selling or planning to use these assets in derivative strategies. This diminishes the optimistic technical expectations regarding SOL potentially revisiting the $260 level reached in November.
Although technical indicators suggest that SOL is maintaining a crucial support level and laying the groundwork for price increases, the substantial amounts of coins moved to exchanges are causing unease among investors.
Interest in the Derivatives Market Remains Low
The options market for SOL on Deribit presents a weak outlook as well. According to Amberdata, investors are primarily selling bullish call options. This indicates low short-term expectations for price increases in the market.
The declining interest in call options suggests that investors may be preparing for a sideways movement or a decline in SOL’s price rather than expecting a rally.
