Solana broke below its $100 support, dropping to $98 before a slight rebound to around $99.90. Long liquidations topped $10 million as derivatives activity pulled back across the board, while momentum indicators point to further downside unless SOL reclaims $102.
Solana [SOL] breached the $100 support and fell to $98 before rebounding slightly. The token traded around $99.90 at the time of reporting, marking a 1.8% daily decline.
The drop pushed SOL below its 9-day and 21-day moving averages, reflecting growing short-term bearish pressure. It also liquidated traders who had bet on continued upside, and CoinGlass data showed over $10 million in long liquidations.
Derivatives activity pulls back
As Solana declined, investors appear to have panicked and increased selling significantly, turning the derivatives market red. Derivatives volume dropped 8% to $7.1 billion while open interest fell 3%. Options volume and options open interest also declined, down 5% and 10% respectively.
Together, these declines point to reduced participation across Solana's derivatives market. However, the figures do not prove that institutional investors specifically reduced exposure.
At the same time, futures outflows reached $1.78 billion, exceeding $1.69 billion in futures inflows, pushing futures netflow down to -$86 million. Declining derivatives activity often signals uncertainty as traders reduce exposure or wait on the sidelines, though lower speculative participation may also reduce leverage-driven volatility.
That caution showed up in the spot market too. Spot netflow turned positive after remaining negative for five consecutive days, rising to $2.8 million at press time, which still confirms selling pressure given sellers were active on both sides.
Momentum points to further downside
On a short-term basis, the trend leans bearish, as shown by the 9-day and 21-day moving averages. The Bulls V Bears indicator has also held negative for two consecutive days, suggesting active traders are mostly sellers. Historically, such a setup has preceded short-term price drops.
If pressure continues, Solana could drop toward $93, with a move below $90 on the table. To invalidate the current bearish outlook, SOL needs a daily close above $102.
Source: AMBCrypto
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