Solana (SOL) has experienced a significant price decline, dropping to a low of $80.29 after failing to hold above the $90 level. The cryptocurrency extended its losses, breaking below key support levels at $88 and $85. As of the latest data, SOL is consolidating below $85 and is trading beneath the 100-hour simple moving average, indicating continued bearish pressure in the short term.
A key bearish trend line is forming with resistance at $85.50 on the hourly SOL/USD chart, acting as a major hurdle for any recovery attempt. Immediate resistance levels are seen at $85, followed by $87.20 (the 50% Fibonacci retracement level of the recent drop from $94.10 to $80.29) and a main resistance zone at $88.80. A successful close above $88.80 could pave the way for a move toward $95 and potentially $102.
On the downside, the $80 level is the critical support being watched by traders. If this support fails, the next major support zones are at $72 and then $65. Technical indicators present a mixed picture: the hourly MACD is losing pace in the bearish zone, while the RSI is above 50 on the hourly chart but sits at a bearish 43 on the daily timeframe.
The broader market context reveals mixed signals for Solana. U.S. spot Solana ETFs recorded a net inflow of $24 million last week, bringing cumulative net inflows to $957 million. However, the final two days of the week saw outflows totaling $13.46 million ($5.23 million and $8.23 million), which analysts attribute to broader market pressures from rising oil prices and geopolitical tensions.
In derivatives markets, Open Interest for SOL rose 1% to $5.01 billion, with the funding rate improving slightly. Despite this, $19.79 million in positions were liquidated in 24 hours, with $15.52 million coming from long positions.
In a notable development for adoption, Solana has surpassed Ethereum in the number of wallets holding tokenized real-world assets (RWAs), with 154,942 wallets compared to Ethereum's 153,592. This growth is largely driven by retail traders accessing tokenized shares on Solana's low-fee network. However, Ethereum maintains a dominant lead in the total value of tokenized RWAs, holding $15.5 billion versus Solana's $1.8 billion, and supports nearly twice as many tokenization projects.
