Key takeaways
- Solana has fallen about 10% in the past 24 hours and is now trading below $140.
- The coin could decline further if market sentiment continues to weaken.
Market sentiment weakens as crypto suffers heavy losses
SOL, the sixth-largest cryptocurrency by market capitalization, has lost roughly 13% this week, marking its third consecutive week of declines. This bearish stretch comes even though the U.S. spot Solana exchange-traded funds (ETFs), launched two weeks ago, reported historically low net inflows, suggesting weaker institutional demand. According to Sosovalue, U.S. Solana spot ETFs recorded a net inflow of $1.49 million on Thursday, mainly driven by the Bitwise Solana Staking ETF. That was the smallest inflow since the Solana ETFs launched, pointing to diminished interest from institutional investors.
Further data from CoinGlass shows that SOL futures open interest (OI) fell by 3.34% over the past 24 hours to $7.35 billion. That decline suggests futures traders are either closing long positions or reducing leverage.
Consistent with the current market conditions, the OI-weighted funding rate has moved into negative territory at -0.0076% after being near neutral earlier in the day, indicating a tilt toward short positions. If these conditions persist, any recovery is likely to be an uphill battle for bulls.
Will Solana extend its slide toward $120?
The daily SOL/USD chart remains bearish and shows sustained underperformance in recent days. The coin is slipping for a fourth straight day after briefly breaking below the psychologically important $150 level a few hours ago.
At the time of writing, SOL trades around $138 and is eyeing the $126 low from June 22. A break below that local low could push SOL toward the next psychological support at $100 in the coming days or weeks.
The Relative Strength Index (RSI) has dropped to around 36 on the daily chart, moving closer to oversold territory and signaling increased selling pressure. The MACD (Moving Average Convergence Divergence) also failed to cross the signal line, reinforcing the downward bias.
However, if technical indicators stabilize and SOL holds above $126, the token could stage a modest rebound toward the demand zone near $155, which previously acted as a supply area. The next resistance level around $175 may present a tougher hurdle in the short term.