The decrease in inflow and tight supply is cooling the derivatives market, reshaping liquidity dynamics and creating unique accumulation opportunities for strategic investors.

Structural strength at the $120 price level: Convergence of on-chain signals
120 USD is not just a technical benchmark, but also a structural key point. On-chain data shows that there has been a significant redistribution of supply.

Transferring from the exchange to a self-custody wallet has historically been associated with the accumulation phase. Major shareholders are reallocating assets at this price level, indicating that the selling pressure in the short term has eased.
This support area coincides with key Fibonacci retracement levels and historical trading volumes.

If buyers hold the $120 level, it may trigger a rebound trend. However, once it falls below this price point, it is likely to trigger stop-loss orders and accelerate the downward momentum. Most of Solana's circulating supply is below its cost basis, indicating that on-chain pressure is a typical characteristic of a deep correction.
USDC Inflows and Liquidity Transfers: A New Dynamic of Capital Movement
In November 2025, the liquidity situation of Solana underwent significant changes. Over $2.12 billion of USDC flowed into Solana.

The blockchain saw an inflow of 1.11 billion dollars. This difference highlights a shift in market sentiment: the inflow of stablecoins has driven liquidity, while the outflow of native tokens indicates that short-term holders are engaging in strategic sell-offs.
The investment of $450 million further highlights this transformation.

Exit the network, USDC as a stable trading medium, its liquidity inflow is crucial to the Solana ecosystem, especially for DeFi protocols. And, used for high-frequency trading.
SOL supply shrinkage and derivation market cooling: a bear market situation with long-term effects
The derivation market of Solana has significantly cooled down.

The market capitalization has dropped to $6.68 billion, while trading volume has surged by 75% to $17.76 billion. This indicates that traders are rebalancing their positions rather than exiting, which is a sign that market volatility is controlled rather than a sign of panic selling.
At the same time, due to the tokens shifting to self-preservation, the supply of SOL has decreased, leading to SOL entering a re-accumulation phase.

The price has fallen back to the levels seen since October 2023, indicating that the market has largely shaken off excessive speculation. The price remains below key moving averages, and unless Solana reclaims $140 and the 50-week moving average, the bears will continue to maintain upward momentum. The $120 level is crucial for measuring the success or failure of the accumulation theory.
Institutional Confidence and Accumulation Narrative
Despite a 9% drop in price in November, institutional demand for Solana remains strong.

The transaction from Forward Industries to Fireblocks Custody highlights the market's continued confidence in Solana. Additionally, the influx of $420 million into the Solana ETF and the launch of SOL/XRP futures by CME also indicate that institutional investors' acceptance of Solana is continuously increasing.
The network upgrade and the expansion of the ecosystem towards DeFi, NFTs, and consumer applications further reinforce this accumulation narrative.

If the macroeconomic environment improves and risk appetite rebounds, capital may flow back into active ecosystems like Solana.
Strategic entry point: A case of controllable optimism
For strategic investors, the current environment offers a highly attractive entry point. If the support level of $120 can be maintained, it may serve as a springboard for a price rebound. The inflow of USDC is stabilizing liquidity, while the decrease in SOL supply and the cooling of derivation prices indicate that the market is in a consolidation phase.

However, it is necessary to proceed with caution. The price must return to $140 in order to challenge the 50-week moving average and reignite the upward momentum. Before that, Solana's movement will depend on institutional capital inflows, macroeconomic changes, and the robustness of its on-chain fundamentals.

In the long run, Solana's structural advantages—stemming from its high-performance blockchain and vibrant ecosystem—enable it to seize potential market rotation opportunities. Currently, the price point of $120 is key to its ability to successfully accumulate.