Key takeaways
- Solana has fallen about 10% in the last 24 hours and is now trading below $140.
- The coin could drop further if market sentiment continues to weaken.
Market sentiment weakens as cryptocurrencies suffer heavy losses
SOL, the sixth-largest cryptocurrency by market capitalization, has lost roughly 13% of its value this week, marking the third consecutive week of declines. The downward performance comes despite U.S. spot Solana exchange-traded funds (ETFs) recording their lowest net inflows on record, a sign of reduced institutional demand. According to Sosovalue, U.S. spot Solana ETFs posted a net inflow of $1.49 million on Thursday, driven mainly by Bitwise’s Solana staking ETF. That was the smallest inflow since Solana ETFs launched, suggesting weakening institutional interest.
Data from CoinGlass also show that SOL futures open interest (OI) fell about 3.34% over the past 24 hours to $7.35 billion. This decline indicates that futures traders are closing long positions or reducing leverage.
Consistent with current market conditions, the OI-weighted funding rate moved into negative territory at -0.0076% from near-neutral levels earlier in the day, signaling that more traders are holding short positions. If these conditions continue, bulls will face a difficult path to recovery.
Will Solana extend the drop to $120?
The daily chart for SOL/USD remains bearish as Solana has underperformed in recent days. The coin is down for the fourth consecutive day this week after dropping below the psychological $150 level a few hours ago.
At the time of writing, SOL trades around $138 and is targeting the $126 low recorded on June 22. A break below that level could open the way to test the $100 psychological support in the coming days or weeks.
The relative strength index (RSI) has dropped to around 36 on the daily chart, moving toward the oversold zone and indicating selling pressure. The moving average convergence divergence (MACD) has also failed to cross above its signal line, extending the downtrend.
That said, if technical indicators improve and SOL holds above $126, the token could stage a modest recovery toward the former demand-turned-supply zone near $155. The next resistance level around $175 may present a significant short-term hurdle.