SOL Mimics March 2022 Top as Exchange Inflows Spike, Clouding Bullish Outlook

A large movement of coins to exchanges indicates that holders may be gearing up to either sell their coins or put those at work in derivatives trading or DeFi strategies.

A crucial market dynamic that was observed during the March 2024 peak in SOL price has resurfaced, potentially impacting the token's bullish technical outlook.

According to data from Coinglass, centralized exchanges saw a large net inflow of $227.21 million in SOL last week. This marks the highest influx since the third week of March.

notably, that period coincided with SOL's then-surging rally peaking around $200 and transitioning into a seven-month range play between $120 and $200.

When large amounts of coins move into exchanges, it suggests that holders may be preparing to either sell their coins or utilize them in derivatives trading or DeFi strategies.

Hence, the recent inflow casts a shadow over the positive technical outlook, which suggests that prices could re-visit the November high of over $260, having recently defended crucial support in a bullish "throwback" pattern.

However, activity in the Deribit-listed SOL options market indicates a lack of bullish enthusiasm. According to data analytics platform Amberdata, traders have been net sellers of the upside (call options) in SOL.