Solana (SOL) traded at $79.90 on Apr. 7 as a head and shoulders pattern on the daily chart neared its neckline.
On-chain data from Glassnode shows a swing of more than 2 million tokens toward exchanges in under a week — a shift that removes the accumulation buffer that cushioned earlier dips.
SOL Exchange Flows Reverse
The technical setup centers on a head and shoulders formation. The head peaked at $97.80 and the right shoulder formed at $83.11, placing the neckline between $75.62 and $75.07.
A confirmed daily close below $75.07 would activate a measured move of roughly 19%, targeting $62.08. The broader structure's floor sits at $60.56.
What makes this pattern more threatening than when it first appeared is a dramatic reversal in exchange net position data.
On Mar. 31, the 30-day rolling metric read -851,371 SOL, reflecting steady accumulation and reduced selling supply. By Apr. 6, that figure had flipped to +1,180,864 SOL. Holders moved from pulling tokens off exchanges to depositing them at scale, right as the neckline came within range.
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Derivatives Confirm Bearish Tilt
The funding rate for Solana perpetual contracts deepened into negative territory on Apr. 7, dropping to approximately -0.02%. Negative funding means short positions are paying longs — a sign the market's directional bias is turning bearish.
Data shows open interest edged up from $1.91B to $1.94B, suggesting new positions are predominantly shorts.
However, the $30M increase in open interest does not represent the kind of aggressive short buildup that typically triggers a squeeze.
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