Solana Tries to Rebound but a DeFi Contagion Sends 1.32 Million SOL to Exchanges

Solana Tries to Rebound but a DeFi Contagion Sends 1.32 Million SOL to Exchanges

Solana (SOL) price trades at $84.15 on the 12-hour chart, attempting a rebound from the $82.93 support. A hidden bullish divergence has formed between April 15 and April 19, signaling that selling momentum may be exhausting.

However, rising sell volume and a massive spike in exchange inflows complicate the setup. Someone is consistently offloading SOL into each rebound attempt, and the DeFi contagion spreading from Ethereum explains why.

Solana price peaked at $90.79 on April 17 before pulling back sharply. The low at $82.93 on April 19 marked a higher low compared a level reached on April 15. During that same window, the Relative Strength Index (RSI) printed a lower low. RSI is a momentum indicator that measures the speed of recent price changes.

That pattern is a hidden bullish divergence. Price made a higher low while RSI made a lower low, which typically signals that selling pressure is weakening. A rebound attempt has already started from that level.

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Yet volume tells the opposite story. Sell-side volume has been rising since April 18, even as RSI suggests momentum is fading. That combination carries a specific meaning. Fewer percentage moves per sell wave, paired with more participants, points to distribution rather than panic. Someone is consistently unloading SOL into each small rebound.

Meanwhile, the likely source is the spreading DeFi contagion. Following the KelpDAO rsETH exploit, Solana's Kamino Prime Market USDC reserve hit 100% utilization on April 20.

Zero liquidity is available. Multiple USDC vaults are above 95% utilization. Funds with stuck USDC positions may be selling SOL on spot markets to raise cash. That pressure creates the supply cap the chart is showing.

On-chain data confirms the forced-selling thesis. The SOL Exchange Net Position Change has exploded. This metric tracks the 30-day flow of coins into or out of exchange wallets.

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