Solana (SOL) is experiencing a severe market downturn, with key derivatives metrics crashing to levels not seen since 2023. The price, currently trading around $90.20, has fallen more than 70% from its all-time high of $291 set in January 2025. This decline has been accompanied by a dramatic collapse in market interest and trader positioning.
According to data from Coinglass, Solana's Open Interest (OI) has plummeted below $5 billion, sitting at $4.89 billion. This represents a massive drop from its peak of $17.1 billion, which occurred nine months after the price peak. Open Interest, which measures the total value of open derivative contracts, is a key indicator of market attention and speculative activity. Its current low level suggests investors are taking far fewer bets on SOL compared to the bull market frenzy.
In tandem, the weighted funding rate for Solana perpetual contracts has nosedived to its lowest level in over a year. The funding rate is a fee exchanged between long and short traders to keep perpetual contract prices aligned with the spot market. It has been fluctuating but predominantly negative recently, indicating that short traders are paying longs to maintain their positions—a sign of prevailing bearish sentiment in the derivatives market.
Technically, Solana's price is approaching a critical juncture at the $95 level. This area represents a key Fibonacci retracement resistance (38.2% to 50%) from the recent swing high near $120 to the low around $80. The $92–$97 zone previously acted as support and is now expected to act as strong resistance. A daily close above $95 could signal a short-term structural shift favoring buyers, with a potential move toward $105–$110. Conversely, a rejection at this level risks a drop back toward $85, reaffirming the broader downtrend.
Despite the bearish derivatives data, on-chain activity in Solana's ecosystem remains present, with continued use in DeFi, stablecoins, and memecoins. Furthermore, fundamental support comes from institutional investment in Solana-related products and long-term narratives like Visa's use of USDC for settlements on the network.
