Solana’s SOL has emerged as the weakest performer among the top 10 cryptocurrencies by market capitalization after falling 6% over the past 24 hours. The drop has pushed the token back below the $100 level, with market indicators pointing to the possibility of further downside in the near term.
The decline comes despite strong on-chain activity on the Solana network. According to data from Blockworks, Solana recorded more than 150 million transactions on Tuesday, with transaction speeds reaching 1,743 transactions per second. However, this surge in network usage has failed to translate into price support or renewed investor confidence.
Institutional and retail demand for Solana continues to show signs of fatigue. While US-listed Solana-focused exchange traded funds recorded modest inflows of $1.24 million on Tuesday, following $5.58 million on Monday, these figures remain relatively small and have not offset broader market weakness.
Derivatives data paints a more clearly bearish picture. CoinGlass data shows that Solana’s open interest declined by 1.24% over the past 24 hours to $6.65 billion, indicating capital outflows from the market. This suggests traders are closing positions or reducing leverage amid growing uncertainty.
Liquidation data further confirms the bearish bias. Long liquidations reached $22.31 million during the same period, nearly 5 times higher than short liquidations of $4.39 million. This imbalance indicates that bullish traders are being forced out of positions as prices continue to slide.
Funding rates also reflect negative sentiment. Solana’s OI-weighted funding rate has dropped to -0.0238%, signaling that traders are increasingly positioning for downside moves and building short exposure.
SOL’s weakness mirrors a broader selloff across the crypto market. Total liquidations over the past 24 hours reached approximately $683 million, with $509 million coming from long positions. The Fear and Greed Index falling to 14 on Wednesday highlights intense risk off sentiment across digital assets.
If current market conditions persist, Solana could face further losses. On the technical front, the SOL/USD 4 hour chart remains firmly bearish, with the token trading below its 50 day, 100 day, and 200 day exponential moving averages at $127, $139, and $153, respectively.
At the time of writing, SOL is trading near $96. A daily close below the $95 support level could open the door for a move toward the $85 psychological support zone.
Momentum indicators offer little immediate relief. The MACD remains deep in negative territory, while the RSI stands at 31 and continues to trend toward oversold levels, increasing the risk of additional selling pressure.
However, a potential recovery cannot be ruled out entirely. If SOL manages to reclaim the $100 level, it could attempt a short term bounce toward the 50 day EMA near $127, although broader sentiment would need to improve significantly for a sustained recovery to take hold.