Solana Exchange Inflows Spike to $227M – Could This Trigger a Price Crash?

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Simon Chandler

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Simon Chandler is a Brighton-based writer and journalist with over ten years of experience writing about crypto, technology, politics and culture. He has written for Cryptonews.com since late 2017,...

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January 6, 2025

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The price of Solana has climbed to $215 today, marking a 1% gain in the past 24 hours as the crypto market as a whole rise by 0.5%.

This move puts SOL up by 12.5% in a week, although it remains down by 8% in the last 30 days, following profit-taking from investors.

And data from CoinGlass suggests that more pain could be coming, with nearly $300 million in SOL flowing into exchanges in the past couple of weeks.

Yet this is likely to be only a short-term blip, given that the previous four weeks had seen over $600 million in Solana outflows, and given the coin’s long-term strength.

Solana Exchange Inflows Spike to $227M – Could This Trigger a Price Crash?

Looking more closely at the CoinGlass data, we see that SOL exchange inflows amounted to $227 million in the week beginning December 30, with this week already seeing an inflow of $65 million.

Interestingly, inflows often coincide with spikes in the Solana price, meaning that whales and other traders usually take profits when rallies occur.

Conversely, we also see that outflows from exchanges have been greatest during dips, with the week beginning December 16 seeing $460 million in Solana taken off trading platforms.

This suggests that, during bull markets, the smart money generally buys only during short-term corrections.

This is how they make their profits, and even if this week’s data suggests another dive for SOL, we’re likely to see accumulation increase again.

Looking at SOL’s four-hour chart, we see that it may have peaked after enjoying a lift in recent days.

For example, its RSI (purple) has begun declining again after crossing 70 a few days ago, with the oscillator currently on its way down to 50.

It’s also possible that SOL’s 30-period moving average (orange) has peaked in relation to its 200-period average (blue), a sign that it has entered overbought territory in near term.

As such, it’s entirely conceivable that it may retreat to back to $210 or $205 in the next day or so, before rebounding yet again sooner or later.

In the medium- and long-term, Solana is likely to continue making gains as the year progresses.

The next couple of weeks will bring Donald Trump’s inauguration as President, which in turn could usher in some bullish developments as far as cryptocurrency legislation in the US is concerned.

In such a context, Solana may reach $270 by Q2, before rising to $350 by the second half of the year.

Solana’s First Layer-Two Network Launching Soon

While Solana will continue to perform well this year, it may not experience the kind of market-beating growth that defined its 2024.

Traders may have to go the newer, lower cap alts if they want the biggest possible gains, and while this can be a fraught business, there are ways of reducing risk.

One of these is to hone in on the biggest and most popular presales, since these can often lead to big exchange listings.

And one bullish presale coin at the moment is Solaxy (SOLX), which has raised nearly $9 million in its ongoing token offering.

Investors are flocking to Solaxy because it’s about to launch Solana’s first layer-two network.

Its protocol will enable Solana users avoid failed transactions, outages and congestion, which continue to be an issue for the layer-one network, despite recent improvements.

SOLX will serve as Solaxy’s native token, with users needing it to pay for the L2’s (very low) transaction fees.

This will give it plenty of utility, with the coin likely to see rising growth as its native platform attracts greater usage and adoption.

Holders will also be able to stake it, meaning that it should be very much in demand, with a max supply of 138.046 billion SOLX.

Investors can join its sale by going to the official Solaxy website, where they can buy SOLX using crypto or fiat for a current price of $0.001592.

This price will use multiple more times before the sale ends, so anyone interested in Solaxy should move quickly, so as to lock in the biggest possible gains.