Solana’s recent $227 million influx to centralized exchanges raises questions about its future price movement

Solana (CRYPTO: SOL) witnessed a mixed outlook this week as massive inflows were observed moving into centralized exchanges, raising concerns over its short-term price movement.

Last week, SOL recorded a net inflow of $227 million into centralized exchanges, marking the highest inflow since March. This influx mirrors the conditions seen during the price peak near $200 in March, where SOL’s market experienced a prolonged consolidation period.

A large transfer of SOL tokens to exchanges often indicates that holders may be preparing to sell their assets or participate in derivatives trading. This shift clouds the bullish technical outlook for the token, which had been optimistic after it recently defended key support levels. While the price of SOL could retest its November high of over $260, these inflows suggest a possible shift in market sentiment.

Furthermore, the overall market sentiment in the Solana ecosystem remained cautious due to a lack of bullish enthusiasm in the options market. Arkham data reveals that traders have mainly been net sellers of the upside (call) options.

This reflects hesitation in the market despite a recent price rebound, thus increasing the unpredictability of SOL.

Currently, SOL is leading the ongoing altcoin rally after recovering from a low of $178 within the past two weeks. Its trading volume has increased by 6.59% to $3.73 billion. However, some market analysts are still skeptical about SOL. They question whether the token is overbought because its Relative Strength Index (RSI) stands at 56 which indicates neutral market conditions.

The RSI, which is used to determine whether an asset is overbought or oversold, shows that SOL is neither overbought nor oversold. When the RSI is between 50 and 60, the coin may experience continued price movement depending on other factors, such as its correlation with Bitcoin. However, the general market sentiment remains optimistic, which could support further price increase.

Solana’s recent performance indicates a positive trend in 2025. After SOL crossed the $200 mark, analysts predicted that it could attain a new all time high price in the near future. As of now, SOL is 18.26% away from it’s all-time high of $263.83, recorded in November 2024.

Solana’s recovery from below $180 has fueled bullish sentiments for continued price increase. Experts say that the altcoin could rise to a new all-time high in the coming months.

Additionally, there is increased optimism that Solana’s spot exchange-traded fund (ETF) will be approved this year.

Major asset managers, such as VanEck, Grayscale, and 21Shares, have filed for the approval of a Solana ETF. The approval of a Solana ETF may attract huge institutional interest, which will further increase the price of the coin. Therefore, Solana is positioned for a potentially prosperous 2025, if market conditions continue to be favorable.