Key Takeaways
- Solana climbed more than 2% on Monday following a consecutive four-day decline that resulted in a 5% weekly loss.
- Friday saw US spot Solana ETFs register $7.84 million in withdrawals, marking the fourth-highest single-day outflow since inception.
- SOL derivatives faced $22.98 million in liquidations within 24 hours, with long positions comprising $19.18 million of the total.
- The funding rate dropped to negative territory at -0.0141%, indicating traders are compensating to maintain short exposure.
- Critical support exists near the $70–$75 range, with market watchers eyeing a possible decline toward $50 if this zone fails.
Solana is attempting a rebound following a challenging week, yet underlying market metrics paint a cautionary picture. Institutional withdrawals, significant position liquidations, and bearish derivatives signals all indicate the recovery might be temporary.
Solana concluded the previous week with approximately 5% in losses, reaching lows slightly above $81 before posting a Monday gain exceeding 2%. The token had fallen beneath an ascending trendline near $88, a development that technical analysts interpreted as a significant shift.
The 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) all currently trade above the spot price, reinforcing the bearish technical framework. For sentiment to shift, SOL needs sustained daily closes above the $91 threshold.
The MACD indicator recently dropped below its signal line and entered negative zone. Meanwhile, the RSI reads 42, beneath the neutral 50 mark, signaling that selling pressure remains dominant.
US-based spot Solana ETFs experienced $7.84 million in net withdrawals on Friday exclusively. This represented the fourth-largest single-day exodus since these investment vehicles launched, completing three straight weeks of negative net flows.
Should institutional outflows persist throughout the current week, additional downward pressure on the already vulnerable price structure would likely intensify.
Regarding derivatives markets, $22.98 million worth of SOL positions were liquidated over the past day. Long positions accounted for the majority at $19.18 million in forced closures.
The negative funding rate of -0.0141% reveals traders are accepting costs to maintain short positions, providing clear evidence of prevailing bearish market expectations.
Market Analysts Highlight $70–$75 as Critical Support Territory
Crypto analyst Patel shared a two-week chart illustrating SOL’s approximately 77% decline from its all-time peak near $250. His analysis identifies a significant support and potential entry zone spanning $45 to $75, with a Fibonacci retracement level at $52.11 representing a deeper downside objective.
Patel observed that bullish commentary was widespread when Solana traded above $250 but has since disappeared with prices below $80. He interprets the current weakness as a possible accumulation opportunity for patient investors, projecting eventual targets of $500 and $1,000 over an extended timeframe.
Additional technical examination from More Crypto Online utilized an hourly chart to demonstrate Solana had breached a near-term ascending trendline. This analyst characterized the movement as a potential “wave 3” decline, projecting a support band between $71.91 and $77.91.
Current Technical Landscape
Near-term support rests at the recent $81.44 low. A breakdown beneath this level would expose $75.63, the February 24 low that initiated the previous upward trajectory.
Overhead resistance concentrates between $84.85 and $87.71, with the 50-day EMA at $91.24 representing a more substantial obstacle.
SOL ETF capital flows remain under intense scrutiny, with Friday’s $7.84 million withdrawal providing the most tangible evidence of institutional caution to date.
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