Solana’s (SOL) latest price decline comes against the backdrop of a broader period of weakness in the digital asset market, with traders increasingly shifting toward risky positioning.
Related reading
After weeks of steady losses, SOL has fallen below key technical levels, raising questions about whether current support can hold or if a new leg lower is on the way. Market data shows declining trader confidence, increasing short positions and weakening profitability in the chain.
According to data from CoinMarketCap, Solana recently traded in the $70 range after failing to keep momentum above $95 earlier this 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.
SOL's price trends to the downside on the daily chart. Source: SOLUSD on Tradingview
Derivatives markets are signaling growing downside risk
Open interest in Solana future fell roughly 2% to about $5.09 billion, even as trading volume rose sharply. This combination often indicates liquidations rather than new buying activity. Also, funding rates have turned negative and the long-to-short ratio has fallen below 1, indicating more traders are positioning themselves for further declines.
There is also a short bias in 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 the major moving averages, while momentum indicators continue to trend downward. RSI readings near oversold territory reflect continued selling pressure rather than confirmed reversal signals.
Data about the chain shows that holder confidence is decreasing
Figures about the chain support the cautious outlook. Figures from Glass junction indicate that only about 20% of Solana addresses are currently in profit, the lowest level since late 2023. During previous market downturns, similar figures appeared to be closer to the capitulation phase, indicating that downside risk may not have been exhausted.
Long-term holder accumulation, which strengthened earlier this year, has slowed significantly as the price fell below $100. Analysts interpret this as waning conviction among investors who previously absorbed supply during pullbacks.
Important levels that traders look at
Chart 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, recoveries are meeting resistance around $82-$83, where a bearish trendline has formed.
Related reading
Solana’s prospects depend on whether buyers can defend the February lows. Without a sustained recovery of higher resistance zones, the market structure suggests that the broader downtrend remains intact as uncertainty in the crypto market continues to weigh on sentiment.
Cover image of ChatGPT, SOLUSD chart on Tradingview