Solana (SOL) broke through the $200 mark during trading on January 2, showing strong upward momentum. This rally persisted even as Pump.fun, a platform for creating and trading memecoins, moved large amounts of SOL to Kraken.
According to Solscan, Pump.fun made two significant deposits to Kraken on January 1. The first, worth $22.8 million, happened at 4:37 PM UTC, followed by another $32.7 million transfer at 5:45 PM. The platform added a further $13.11 million in SOL to Kraken on January 2.
Historically, large exchange inflows have tended to coincide with increased selling pressure, a prelude to a price decline. The strong demand for Solana so far has swallowed this supply and is pushing the price higher. SOL broke above a descending parallel channel on January 2 in which it had been trading since late November and might be signaling a bullish reversal.
The price has also broken above its 20-day Exponential Moving Average, an indicator of rising demand. This indicator tracks the trend in prices over the last 20 days and reflects a shift toward bullishness.
Technical indicators support this outlook. Also, the MACD line has just crossed above its signal line on 1 January, which could indicate further upward momentum. If the trend continues, Solana might test the next resistance at $219.31 and at best reach its all-time high of $264.63.
This means a sudden increase in selloffs could revert all the gains to $189.24.
