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Analyst: $SOL SOL supply on CEX drops to 27.01m, nears lowest point amidst price boom

The SOL token supply on centralized exchanges has dropped by 27.4% to 27.01 million, approaching the token’s lowest CEX supply in October 2022. Analyst believes the drop signals a bullish market is on the horizon. #ETHMarketWatch

According to on-chain $SOLV analyst Murphy’s post on X, from early March until now, the amount of Solana sol-0.82%Solana held on centralized exchanges have dropped drastically from 37.22 million to 27.01 million. The 27.4% decrease signifies the deepest drop to levels nearing the token’s lowest point, last seen in October 2022.#SolanaStrong

Referencing data from Glassnode, Murphy concluded that such a drop in Solana supply on exchanges like Binance, Coinbase, and Kraken, could indicate an increase in market demand for SOL. It suggests a growing desire among investors to hold more tokens rather than sell, which could result in either a potential price boost for Solana or a slow-down in the rally.

“This is bound to be a focal point for bullish and bearish battles; between $162 to $176, there is a significant chip accumulation zone, which can provide strong support during declines but may also create resistance during rises,” wrote Murphy in a recent post.#WriteToEarnWCT

All these events indicate strong foundational support for SOL.#BinanceAlphaAlert

At press time, Solana has dipped slightly by 0.5% in the past 24 hours. The token is currently trading hands at around $174. In the past month, SOL has seen fairly positive movements, rising by more than 15%. The token’s market cap stands at $90.7 billion, while its daily trading volume has seen a 23.3% increase, amounting to nearly $4 billion.#TradingTypes101

Murphy believes that if SOL manages to surpass the $176 threshold, it could clear much of the “trapped supply” and open the door for a potential price expansion. $WCT