Solana's native token, SOL, has broken below the crucial $80 support level, extending a bearish trend that began earlier in the week. The asset is currently trading around $76.50, marking a 4.5% decline in the last 24 hours and approaching the next key support at $75. This downturn is part of a broader market weakness affecting major cryptocurrencies like Bitcoin and Ethereum.
Despite the price decline, institutional interest remains a bright spot. U.S. spot Solana ETFs recorded $7.99 million in inflows on Monday, continuing a nine-session accumulation streak. This institutional support contrasts sharply with retail and derivatives market sentiment. Data from CoinGlass shows Solana's Open Interest (OI) has declined 1.44% to $4.92 billion, with long liquidations of $15.97 million vastly outpacing short liquidations of $3.46 million. The long-to-short ratio stands at 0.9627, and the funding rate is negative at -0.0027%, collectively indicating a dominant bearish bias among traders.
The technical outlook reinforces the negative momentum. SOL is trading below both its 50-day and 200-day Exponential Moving Averages (EMAs). Key indicators like the Moving Average Convergence Divergence (MACD) show fading bullish momentum, while the Relative Strength Index (RSI) at 37 is approaching oversold territory. Analysts suggest if the $75 support fails, SOL could retest the February 6 low near $67. A recovery would need to reclaim the $91 level to shift the narrative.
This bearish price action unfolds even as Solana achieves a significant adoption milestone. The Kingdom of Bhutan has launched the world's first Solana-backed visa for digital nomads, building on its previous issuance of a gold-backed token (TER) on the Solana blockchain. This sovereign-level adoption highlights Solana's growing role in digital infrastructure but has not yet translated into bullish price momentum.
On-chain data from Glassnode reveals sustained selling pressure, with realized losses for SOL holders jumping by $68 million to $317 million in the past day. The derivatives liquidation map shows a heavy skew, with $1.15 billion in short positions at risk if SOL rallies to $89, compared to $242 million in long liquidations if it falls to $67. With Bollinger Bands converging, the stage is set for a potential volatility spike, with the immediate direction hinging on the defense of the $73-$75 support zone.
