Market Overview (Past 24-72 Hours): Solana (SOL) has faced significant market pressure in recent weeks, with its price dropping to approximately $132.69. Over $10 billion has exited Solana’s market cap in the past 30 days, with much of the downward movement linked to broader cryptocurrency market trends and weakening on-chain activity. Notably, the emergence of meme coins, which once bolstered Solana, has intensified selling pressure (Cointelegraph, Finbold).
Technical Analysis: Solana is currently in a critical zone, hovering around key support at $127. The price has been stuck in a bearish pattern, with strong resistance at $133.86. If SOL fails to maintain this support level, it could dip as low as $100 in the coming weeks. Meanwhile, Solana’s open interest has risen by 20%, signaling aggressive short-selling by futures traders. A negative funding rate further reinforces the bearish sentiment (Cointelegraph, Finbold).
Key Events to Watch:
- Open Interest & Short-Selling: Solana’s rising open interest, despite the price drop, points to aggressive shorting by futures traders. The bearish trend is expected to persist unless there is a positive market shift.
- Market Cap Decline: The token has shed $10 billion from its market cap, largely due to weak on-chain activity and broader market challenges (Cointelegraph, Finbold).
Outlook: If Solana can hold above $127, there is a potential for a bullish recovery, particularly if the market turns positive in Q4. However, breaking below this support could see a drop to the $100-$110 range (Finbold).
