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- Exchange reserves fall sharply, signaling strong accumulation.
- SOL faces crucial $262 resistance before a possible $300 rally.
- Selling pressure fades as spot flows show bullish shift.
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Solana’s [SOL] token is showing mounting signs of strength, with on-chain data suggesting long-term holders are tightening supply and priming the market for a potential Breakout.
Exchange Reserves Drop, Signaling Accumulation
Since early September, Solana’s exchange reserves have fallen sharply, with more than $72 million withdrawn in a single day. This pattern of consistent outflows reflects growing confidence among long-term holders, as tokens are moved off exchanges into self-custody. Lower reserves reduce sell-side liquidity, limiting immediate supply and easing downward pressure on the price.
Such behavior has historically preceded major price advances. The market appears to be interpreting these flows as conviction in Solana’s medium-term outlook.
Technicals Align for a Potential Breakout
Price action mirrors this accumulation trend. SOL is forming a rounded bottom structure—a bullish reversal pattern—while holding firm above $220 and recently hovering near $236. The next major resistance sits at $262, a level that could trigger a decisive move if breached.
Momentum indicators are also shifting positive, suggesting buyers are regaining control. A clean breakout above $262 could open the path toward $300, a target increasingly discussed by traders.
Spot Data Shows Selling Pressure Fading
Spot flows reinforce this setup. Net outflows of $72.4 million on 15 September capped a streak of red prints, revealing steady removal of liquidity from exchanges. Meanwhile, Solana’s spot taker CVD has shifted from heavy sell-side dominance to neutral. This easing of selling pressure creates a pivot zone where buyers could step in and accelerate the rally.
With liquidity tightening, sell pressure fading, and technicals turning constructive, Solana appears poised for a critical test. If accumulation persists and SOL breaks above $262, the long-discussed $300 target could come into play. Until then, traders will be watching closely for signs that bulls are ready to take over.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Galaxy Digital Buys $306M in Solana, Driving Institutional Crypto Treasury Boom
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