Solana (SOL) continued its downward trajectory on Friday, falling below the $70 mark and extending its losing streak to four consecutive sessions. The token is currently trading at $68, reflecting persistent bearish pressure despite a notable uptick in institutional engagement.
Institutional Demand Rises Amid Price Weakness
Data from CoinShares shows that Solana-focused exchange-traded funds (ETFs) recorded $2.99 million in inflows on Thursday, bringing the weekly total to $7.11 million. While monthly flows remain slightly negative at around $2.00 million, sustained inflows could push the category back into positive territory and extend a streak of eight consecutive months of net inflows.
Adding to this momentum, Morgan Stanley submitted an amended S-1 filing to the U.S. Securities and Exchange Commission for its Solana-focused ETF (MSOL), signaling continued institutional product development around the asset. These developments suggest that large-scale investors are gradually increasing exposure to Solana, even as broader market sentiment remains cautious.
Retail Sentiment Remains Fragmented
Retail participation in Solana markets appears more fragmented. CoinGlass data shows Solana futures open interest has declined to $4.79 billion, down from $5.18 billion earlier in the week. The decline in open contracts indicates waning speculative activity and lower short-term trading engagement.
Liquidation data further highlights bearish pressure. Over the past 24 hours, long liquidations totaled approximately $15.02 million, significantly exceeding $1.52 million in short liquidations. This imbalance reflects a market still tilted toward downside positioning.
However, on-chain activity presents a contrasting picture. Solana continues to see strong ecosystem engagement, particularly in tokenized Real-World Assets (RWAs). According to SolanaFloor, the network now hosts over 285,000 RWA holders following the tokenized SpaceX IPO activity, making it one of the leading chains in this category.
Solana Price Outlook: Bearish Structure Dominates
Similar to other leading cryptocurrencies, the SOL/USD 4-hour chart remains extremely bearish. Despite pockets of strength in fundamentals, Solana remains in a broader downtrend after reversing from its September peak near $253.
On the weekly chart, price action is forming a descending wedge pattern, which typically signals potential bullish reversal conditions if a breakout occurs. However, downside risk remains prominent in the near term.
The next major support zone lies near the Fair Value Gap (FVG) between $46.90 and $51.12, formed in November 2023. Before reaching that level, bulls would likely defend support levels near $60.13 and the June 6 low of $59.16.
For bullish momentum to re-emerge, buyers must first reclaim $75.63. A stronger confirmation would require a weekly close above the overhead resistance trendline near $83.50, which could validate a broader trend reversal from the current bearish structure.
Momentum indicators remain cautious. The 4-hour Moving Average Convergence Divergence (MACD) shows weakening bearish momentum as histograms contract near the signal line. Meanwhile, the Relative Strength Index (RSI) sits around 47, reflecting subdued momentum without a clear reversal signal.
Until key resistance levels are reclaimed, Solana remains vulnerable to further bearish movement despite improving institutional participation. For context, similar patterns have been observed in other assets like BNB and XRP, which have also faced headwinds amid weak derivatives data.
This article is for informational purposes only and does not constitute financial advice.
