Seeker [SKR], the native token for the Solana [SOL] mobile phone, has seen a euphoric rush, as capital flows into the asset in a way that strengthens the case for a continued long-term rally and stretch in price.
Now, one of the major concerns remains the recent exits of holders who keep the asset in their balance as they exit their positions completely, following the 186% run SKR had in the early hours of the day.
Flow of capital makes the market bullish
There’s been a balance of capital in the market, as investors continue to add more in a way that cements their bullish stance.
The perpetual and Spot market flows both show that investors are on the buy side. The Spot market, in this case, has seen more capital flow outside of exchanges into private wallets, placing its netflow at a negative.
This typically implies that investors now have a sense of long-term commitment, as they expect the price to continue in this upward path for a while.
For context, in the past day, the netflow reached -$993,000, and when considering its cumulative netflow over the past 10 days, it’s at -$585,000 on the chart.
In the perpetual market, there’s been more inflow of capital, meaning that despite profit-taking activities, investors are still channelling more capital, likely to bet on more upside moves, as is often the case.
There’s been $486.7 million in capital flow in the past day, with a netflow of about $14.06 million, giving insight into where these investors stand.
Will holder exits be an issue?
One major concern has been a growing trend of holders exiting the market outright following the surge in price.
CoinMarketCap reported that the number of holders of SKR in the market had declined slightly by roughly 40 holders, down to just 41,980 at the time of writing.
A drop of this level when the price is performing well could be a pattern worth observing, especially as the opposite tends to occur more, with investors buying more of the asset.
For now, if this trend extends, it’s likely to further impact the price, as it means some holders are becoming cautious.
The bright side, however, is that sentiment remains positive. The community sentiment shows that about 88% of votes that came in regarding whether SKR is bullish or otherwise suggest that the group of investors is expecting more upside.
The trend appears to provide more support for a bullish case than there is for a bearish take at the moment.
Final Summary
- SKR has recorded over $15 million in net buy-side flow across the Spot and perpetual markets, supporting the bullish outlook.
- Holder exits have increased despite the rally, raising concerns about whether selling pressure could weigh on SKR’s price.