Key takeaways
- Solana fell 10% over the past 24 hours and is now trading below $140.
- The coin may decline further if market sentiment continues to weaken.
Market sentiment weakens as crypto suffers sharp losses
SOL, the sixth-largest cryptocurrency by market capitalization, has lost 13% of its value this week, marking a third consecutive weekly decline. This downward performance has occurred despite the spot Solana exchange-traded funds (ETFs) in the U.S. being just two weeks old; they recorded their lowest-ever net inflows, suggesting weaker institutional demand. According to Sosovalue, U.S. spot Solana ETFs registered net inflows of $1.49 million on Thursday, mainly driven by Bitwise’s Solana staking ETF. These inflows are the smallest since the Solana ETFs launched, indicating a pullback in institutional interest.
Additionally, CoinGlass data shows that SOL futures open interest (OI) fell 3.34% over the last 24 hours to $7.35 billion. That decline signals that futures traders are either closing long positions or reducing leverage.
Consistent with broader market conditions, the OI-weighted funding rate moved into negative territory at -0.0076% from a near-neutral level earlier in the day, indicating that sellers now dominate open positions. If current market pressures persist, any recovery is likely to be difficult for bullish momentum.
Will Solana extend the drop to $120?
The SOL/USD daily chart remains in a bearish bias as Solana has underperformed over the past several days. The coin slipped for a fourth consecutive day this week after breaking below the psychological $150 level a few hours ago.
At the time of writing, SOL is trading around $138 and is eyeing a low near $126 recorded on June 22. If SOL breaches that low, it could test the psychological $100 support within days or weeks.
The Relative Strength Index (RSI) on the same chart has dipped to 36, sliding toward oversold territory and reflecting selling pressure. The Moving Average Convergence Divergence (MACD) histogram has also failed to cross above its signal line, which extends the downtrend signal.
However, if technical indicators improve and SOL holds above $126, the token could stage a modest recovery toward the $155 demand zone that may turn into resistance. The next meaningful resistance near $175 could prove challenging to overcome in the near term.