Solana, 'Massive Sell-off Bomb' Amid Rebound Signals... Market Tension Escalates

▲ Solana (SOL)

As Solana (SOL) shows technical rebound signals, a massive volume of assets has flowed into exchanges all at once, leading the market to a critical juncture.

According to crypto media outlet BeInCrypto on April 20 (local time), Solana is attempting a rebound from around $84, based on the $82.93 support level. While the price is gradually forming higher lows, the Relative Strength Index (RSI) has recorded lower lows, indicating a bullish divergence. This is generally interpreted as a sign that selling pressure is weakening and the likelihood of a rebound is increasing.

However, at the same time, strong selling pressure is entering the market. According to on-chain data, the volume of Solana flowing into exchanges has surged in a short period. The net inflow, which was around 100,000 SOL on April 15, exceeded 1.32 million SOL on April 19. This represents an increase of over 1,100% in just four days. An increase in exchange inflows typically signifies an expansion of sell-off ready volume, acting as a key variable suppressing the rebound trend.

Behind this pressure is widespread instability across the decentralized finance (DeFi) ecosystem. The shock that began on Ethereum after KelpDAO's rsETH hacking incident has spread to Solana. In particular, the USDC deposit utilization rate of Kamino, a major Solana-based lending protocol, has reached 100%, effectively depleting liquidity. Analysts suggest that investors whose funds are locked up are continuing to sell their holdings to secure cash.

In contrast, long-term holders are stepping up to defend the market. Investors who have held for more than 155 days have accumulated an additional approximately 487,000 SOL over the past three days, increasing their holdings by about 20%. The current limited rebound is forming within a structure where short-term selling pressure and long-term buying pressure clash.

The future direction depends on whether key price levels are broken. If it definitively surpasses the mid-$85 range and recovers the resistance level around $90, the upward trend could strengthen. Conversely, if the $82.93 support level breaks, the bullish signal will be invalidated, and downward pressure could intensify. In particular, if it falls below the Fibonacci 0.618 retracement level, an additional downward range could open up.

The market is currently watching the speed of the DeFi crisis spread and the buying strength of long-term holders as key variables. With technical rebound signals and actual selling pressure clashing simultaneously, Solana appears to have entered a period of high volatility.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*