Solana sees $381 million in accumulation while 2.2 million SOL leave exchanges, signaling increasing investor confidence. The tightening of the Bollinger Bands suggests that a volatility squeeze is imminent, which could lead to a breakout or further consolidation. SOL must convert $178 into support and surpass $188 to confirm a rally; failure risks a drop below $168, weakening the bullish case.
Solana (SOL) has recently shown limited price movement despite substantial token accumulation. The price has remained relatively stable in May, likely due to the overheating of the altcoin.
While this stagnation is a caution signal, the market is optimistic, which could lead to potential gains for Solana in the near future.
In the last 10 days, Solana's balance on exchanges has decreased by 2.2 million SOL, valued at approximately $381 million. This decrease in supply indicates that investors have been accumulating Solana during this period. The continued accumulation is likely driven by a mix of factors, including overall bullish market sentiment, FOMO, and the expectation of future price appreciation.
This reduction in supply reflects greater investor confidence, with many choosing to hold rather than sell their SOL. As more investors accumulate the token, the supply on exchanges decreases, potentially creating upward pressure on the price in the long term.
The overall momentum of the SOL market shows signs of potential volatility. Technical indicators, such as the Bollinger Bands, reveal that the bands are tightening.
This tightening of the bands is a classic signal of a potential squeeze, which often precedes an increase in price volatility.