Solana’s (SOL) latest price decline is unfolding against a broader period of weakness across the digital asset market, with traders increasingly shifting toward risk-off positioning.
After weeks of steady losses, SOL has slipped below key technical levels, raising questions about whether current support can hold or if another leg lower is approaching. Market data shows declining trader confidence, rising short positioning, and weakening on-chain profitability.
According to data tracked on CoinMarketCap, Solana recently traded in the high-$70 range after failing to maintain momentum above $95 earlier in the year. The move extends a six-week losing streak and places the asset near critical support zones that analysts say will likely determine the next directional move.
Derivatives Markets Signal Growing Downside Risk
Open interest in Solana futures fell roughly 2% to about $5.09 billion, even as trading volume surged sharply. This combination often indicates liquidations rather than fresh buying activity. Also, funding rates have turned negative, and the long-to-short ratio has dropped below 1, suggesting more traders are positioning for further dips.
Short bias has also appeared among larger accounts despite retail traders maintaining leveraged long exposure on exchanges such as Binance and OKX. Analysts warn that this imbalance could increase the risk of additional volatility if support levels fail.
Technically, Solana remains below major moving averages, while momentum indicators continue trending downward. RSI readings near oversold territory reflect sustained selling pressure rather than confirmed reversal signals.
On-Chain Data Shows Weakening Holder Confidence
On-chain metrics support the cautious outlook. Figures from Glassnode indicate that only about 20% of Solana addresses are currently in profit, the lowest level since late 2023. During previous market downturns, similar readings appeared closer to capitulation phases, suggesting downside risk may not yet be exhausted.
Long-term holder accumulation, which strengthened earlier in the year, has slowed notably as the price dropped below $100. Analysts interpret this as declining conviction among investors who previously absorbed supply during pullbacks.
Key Levels Traders Are WatchingChart data shows immediate support clustered between $75 and $67. A decisive break below this region could expose lower targets near $62 or even $60 if selling accelerates. On the upside, recovery attempts face resistance around $82–$83, where a bearish trend line has formed.
Solana’s outlook hinges on whether buyers can defend the February lows. Without a sustained reclaim of higher resistance zones, market structure suggests the broader downtrend remains intact as crypto market uncertainty continues to weigh on sentiment.
Cover image from ChatGPT, SOLUSD chart on Tradingview
