Solana Faces Third Week of Losses
Solana (SOL) has dropped over 13% this week, marking its third week in a row of losses. The new Solana spot Exchange Traded Funds (ETFs) in the US have recorded their lowest net inflows since launch. This shows weaker demand from institutional investors. The derivatives market sentiment is also bearish, as rising market volatility reduces risk exposure to Solana.
Weak Demand and Bearish Market Sentiment
Solana’s price falls amid Bitcoin’s slide below $100,000. Data from Sosovalue reports that US Solana spot ETFs gained only $1.49 million in net inflows on Thursday. Most of this came from the Bitwise Solana Staking ETF. This is the smallest inflow since these ETFs started, highlighting cautious institutional interest.
The derivatives market also shows less confidence. CoinGlass data reveals that Solana futures Open Interest (OI) dropped 3.34% in 24 hours to $7.35 billion. Traders are closing long positions or lowering leverage. The OI-weighted funding rate shifted to a negative -0.0076%, signaling that traders expect a continued price drop and favor short positions.
Technical Outlook: Solana Eyes $100 Support
Solana’s price is down nearly 2% on Friday, falling below the key $150 level. It is now testing the $126 low from June 22. A break below $126 could push the price toward the $100 support, then possibly the $95 low from April 7.
Technically, bearish signals dominate. The 50-day and 200-day Exponential Moving Averages (EMA) are converging, risking a Death Cross pattern. This could confirm a strong sell signal. The Moving Average Convergence Divergence (MACD) remains bearish, while the Relative Strength Index (RSI) near 31 suggests oversold conditions.
However, the RSI shows a bullish divergence, which may signal a potential price rebound. If Solana climbs back above the $155 resistance zone, it could move toward $175 next.
