Key Takeaways
- Solana has fallen about 10% in the past 24 hours and is now trading below $140.
- The coin may decline further if market sentiment continues to weaken.
Market sentiment deteriorates as cryptocurrencies suffer heavy losses
SOL, the sixth-largest cryptocurrency by market capitalization, has lost roughly 13% this week, marking its third consecutive week in the red. The downtrend is occurring even though the recently launched US Solana spot Exchange Traded Funds (ETFs) recorded their lowest net inflows since inception, signaling weaker institutional demand. According to Sosovalue, US Solana spot ETFs logged a net inflow of just $1.49 million on Thursday, driven mainly by the Bitwise Solana Staking ETF— the smallest inflow since these Solana ETFs debuted, which points to cooling interest from institutional investors.
Additionally, CoinGlass data shows that Open Interest (OI) in SOL futures declined by 3.34% over the last 24 hours to $7.35 billion. That drop suggests futures traders are either closing long positions or reducing leverage.
Consistent with current market dynamics, the OI-weighted funding rate moved from near-neutral levels earlier in the day to a negative -0.0076%, indicating a tilt toward short positions among traders. If these conditions persist, any recovery will likely be a tough fight for the bulls.
Could Solana extend its slide to $120?
The SOL/USD daily chart remains bearish and shows persistent underperformance over recent sessions. The coin has dropped for a fourth consecutive day this week after slipping below the psychological $150 level a few hours ago.
At the time of writing, SOL is trading around $138 and is aiming for the $126 low recorded on June 22. A break beneath that level could open the door for a test of the $100 psychological support in the coming days or weeks.
Technical indicators reinforce the bearish picture. The Relative Strength Index (RSI) on the daily chart has fallen to around 36 and is approaching oversold territory, signaling selling pressure. The Moving Average Convergence Divergence (MACD) has failed to cross above its signal line, which supports the continuation of the downtrend.
However, if technical readings improve and SOL holds above $126, a modest rebound toward the demand-to-supply zone near $155 is possible. Conversely, the next resistance near $175 may prove challenging for bulls to overcome in the short term.