#Liquidity101

Solana is returning to key support levels as selling volume forces the price to move towards critical support near $140. The price action of SOL shows a correction after a rejected top and may now be approaching the base of previous demand. A drop in support below $151, which is key, has led to a decline below $150, which could result in a deeper retracement to the $141 to $145 zone.

Market sentiment around Solana is shifting as large dormant coins move. According to Glassnode data, the platform has witnessed its 3 largest days of coin destruction or CDD, which is a metric that tracks the movement of coins based on how long they have remained dormant. A massive spike of nearly 3.55B CDD suggests either profit-taking or repositioning.

Secondly, another data point in the network indicates a massive outflow – this is the inflow and outflow of bridge cryptocurrencies. These are cryptocurrencies that are transferred from one blockchain to another, and thus the data indicates that investors are exiting Solana. According to Artemis data, Solana is the leading chain that has faced huge outflows.