- Solana has fallen below $100 after a sharp correction, with derivatives and weak institutional demand signaling further downside.
- Technical indicators suggest the next support levels are $95.26 and $79.
Solana (SOL) continues its downward trajectory, trading under $100 on Monday after a sharp correction of over 15% last week. Market indicators and derivatives data suggest that the sell-off may not be over, raising the possibility of further losses in the near term.
Derivatives Signal Bearish Sentiment
Data from Coinglass highlights increasing bearish pressure on SOL. The OI-Weighted Funding Rate turned negative at -0.0080% on Monday, showing that short positions are paying long positions. This reflects a growing expectation among traders that SOL will continue to decline.
Additionally, the long-to-short ratio for SOL stands at 0.97, below the neutral level of 1. This indicates more traders are betting on SOL falling rather than rising, reinforcing the market’s cautious stance.
Institutional Demand Weakens
Institutional interest in Solana has also dipped. SoSoValue reports that spot Exchange Traded Funds (ETFs) recorded $2.45 million in outflows last week, the first weekly withdrawals since their launch. If this trend persists, SOL could face additional pressure, contributing to deeper corrections.
Technical Outlook Points to Further Losses
Solana’s recent price action shows rejection at the weekly resistance level of $126.65, leading to a drop below the psychological $100 mark. As of Monday, SOL trades at $99.60. Analysts note that a daily close below $100 may open the door for further declines toward the April 7 low at $95.26. If the downtrend continues, SOL could test the January 23, 2024, low at $79.
Technical indicators support this bearish view. The Relative Strength Index (RSI) sits at 25, signaling an extreme oversold condition. Meanwhile, the Moving Average Convergence Divergence (MACD) shows a persistent bearish crossover with rising red histogram bars below the neutral line, confirming downward momentum.
Key Levels to Watch
On the upside, any recovery could challenge the weekly resistance at $126.65. However, until a daily close above $100 is firmly established, the market sentiment remains tilted toward further SOL losses. Traders and investors should remain cautious, monitoring both derivatives activity and institutional flows for clues about the next significant move.
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