Solana investors have changed their tactics in the past several days, as on-chain data shows a massive spike in SOL exchange inflows.

According to popular analyst Ali Martinez, such behavior could be the catalyst for a more profound price decline, possibly pushing the asset toward $50, a level not seen in almost three years.

600K SOL Reach Exchanges

Citing data from Glassnode, Martinez outlined the significant uptick in the number of SOL tokens that reached exchanges, going from about 27 million to over 27.6 million, meaning a 600,000 coin deposit. Similar developments suggest that “market participants are moving liquid supply out of private wallets, signaling rising caution around current price levels.”

He added that large-scale token transfers to trading platforms hint at potential de-risking or hedging from investors, potentially leading toward a “short-term drawdown.”

The analyst with over 165,000 followers on X warned that the $50 level might come into focus if this “spot supply triggers an immediate flush.”

“A localized pullback into this key zone would serve to fully absorb the short-term panic and clear the path for a healthy accumulation base before the next major expansion,” he added.

Up or Down Next?

Solana’s native token is up by over 4.5% in the past 24 hours, and has seemingly reclaimed the $70 support. However, fellow analyst Crypto Tony warned that the asset could drop toward $60 if this particular level gives in. The token slipped to $60 during the early June crash, but managed to defend that level. It hasn’t traded at Martinez’s lower target at $50 since late 2023.

Daan Crypto Trades also weighed in on SOL’s potential, but he focused on the BTC pair. He believes SOL is “attempting a breakout from this ralling wedge,” which could send it well above the current upper boundary of 0.0011 SAT. This became possible after SOL bounced from the lower boundary in early June at 0.001 SAT.

Source: CryptoPotato