- Solana’s recent 2.8 million token inflow to Binance comes amid rising sell-side liquidity and capitulation risks.
- Despite mounting pressure, SOL continues to see more tokens flowing out of exchanges than in.
About 2.8 million Solana [SOL] just hit Binance, and it couldn’t come at a more interesting time.
The market’s warming back up, risk appetite is returning, and SOL’s making moves toward that $160 mark again.
Normally, a dump like this might raise eyebrows. But in this case, it might give bulls something to chew on. If the momentum holds, this fresh wall of liquidity could turn into a springboard, not a ceiling.
The only thing left to see? Whether the buyers show up hungry.
SOL faces headwinds as sell-side liquidity deepens
Sure, Solana closed May up nearly 6.8%, holding strong despite all the market volatility. In fact, it even climbed up to $187, hitting levels we hadn’t seen since early March.
But then the market took a hit, and SOL dropped back below $160, courtesy of that familiar macro FUD cloud hanging over crypto.
Yet, the real story lies beneath the surface. On-chain signals are flashing deeper stress. AMBCrypto recently flagged rising capitulation risks, and it looks like some HODLers are still feeling the heat.
Just on the 2nd of June, around $330 million in losses hit the books while SOL traded near $156. Meanwhile, Solana’s hodler net position change turned negative for the first time in nearly five months.
Source: Glassnode
Notably, this metric tracks long-term holders (those who’ve held SOL for over 155 days) and it’s showing they’re starting to sell off.
And this isn’t just a random blip. These seasoned players are either cashing out at breakeven or cutting losses before the squeeze tightens, keeping hodler sentiment on shaky ground.
And that recent 2.8 million SOL dump onto Binance? It might just be the opening act. One more macro scare, and Solana could be staring down a repeat of the capitulation cycle from late February and early March.
Solana bulls on alert!
Undoubtedly, sell-side liquidity has given shorts a clear shot to bet against Solana, with Funding Rates staying in the red for four of the last five days across all exchanges.
In fact, since the 27th of May, around $9.5 million in long liquidations have been swept up, as risk-off vibes slammed the brakes on bullish momentum.
But don’t count bulls out just yet. Despite the looming capitulation risks, mounting sell pressure, and persistent macro FUD, Solana’s Exchange Net Position change is still holding firm below zero.
Source: Glassnode
This means that more SOL is still flowing out of exchanges than in, signaling that bulls are actively pulling tokens off the market to hold rather than dump.
This is a sharp contrast to the last capitulation cycle, when exchanges got flooded with sell orders and SOL reserves ballooned. No surprise, SOL shrugged off the 2.8 million token dump, flexing some serious resilience right now.
If this buying hunger sticks around, Solana could turn this wall of liquidity into a powerful launchpad. But with sell-side pressure stacking up, watching these on-chain flows closely is the name of the game.
