Solana's native token SOL continues to face selling pressure, dropping 2% in the last 24 hours to trade just above $80 at press time. The decline comes as both institutional and retail demand weaken, with bearish technical indicators suggesting further downside risk.
Institutional Demand Falters
Institutional interest in Solana has been waning, reflected in three consecutive weeks of net outflows from Solana exchange-traded funds (ETFs). Data from CoinGlass shows muted inflows since the start of the week, indicating a lack of fresh institutional capital. This trend aligns with broader market caution amid ongoing geopolitical tensions and uncertainty around US-Iran negotiations.
Retail demand is also showing signs of weakness. Solana's futures open interest dropped 3% in the past 24 hours to $4.93 billion, suggesting reduced positional exposure. The funding rate has turned negative at -0.0055%, while the long-to-short ratio stands at 0.9822, indicating a tilt toward short positions.
Technical Picture Remains Bearish
On the 4-hour chart, SOL is trading below its 50-day, 100-day, and 200-day exponential moving averages (EMAs), which act as overhead resistance. The 50-day EMA near $87.29 is the first key level to watch; a daily close above it could ease immediate downside pressure. However, the broader trend remains bearish, with the 100-day EMA at $98.24 and the 200-day EMA at $116.85 representing significant hurdles.
Momentum indicators offer little relief. The Moving Average Convergence Divergence (MACD) line is in positive territory but with only a modest bullish tilt, while the Relative Strength Index (RSI) at 53 hovers just above neutral, suggesting stabilizing momentum but not enough to overcome the dominant overhead structure.
Key Support Levels in Focus
If selling pressure persists, SOL could retest the February low of $77.60. A break below that level would open the door to further declines. Conversely, a sustained move above the 50-day EMA would target the $98.24 resistance zone, with a potential rally toward the 200-day EMA at $116.85 if bullish momentum builds.
Broader market conditions remain a headwind. Bitcoin (BTC) is trading around $74,000, while Ethereum (ETH) and Ripple (XRP) have also retreated after hitting key resistance levels. The ongoing Middle East tensions continue to weigh on risk assets, though a potential US-Iran agreement could provide a catalyst for a recovery.
For context on broader market dynamics, see our coverage of Big Tech Earnings: Wall Street Demands Proof of AI Monetization on $725B Capex and Brent Crude Surges Past $90 as Strait of Hormuz Tensions Tighten; $105 in Sight.
This article is for informational purposes only and does not constitute financial advice.
