Solana traded near the $71 mark on Thursday as it continued to decline, losing over 2.5% in value over the last 48 hours. The asset remained below key short-term moving averages, underlining a weak price outlook in the near term.
ETF inflows failed to boost price
On the institutional front, the landscape appeared more positive. According to SoSoValue data, Solana spot ETFs saw net inflows of $1.06 million on Wednesday, marking a third consecutive day of positive capital movement into these products during the week.
Despite this streak of ETF inflows, the price showed no significant upward movement. Data from the derivatives market indicated that investor sentiment remained weighed down by prevailing downward pressure.
SoSoValue reported that Solana spot ETFs recorded $1.06 million in net inflows on Wednesday. However, even after three days of positive flows, prices showed no meaningful recovery.
Bearish sentiment intensifies in derivatives market
According to CoinGlass data, the ratio of long to short positions in SOL stood at 0.91 on Thursday. This value below 1 indicates that short positions outnumber long ones, with the ratio hitting one of its lowest points in the past 30 days.
Funding rates have also been in negative territory since Tuesday, sitting at minus 0.0036% as of Thursday. This means traders holding short positions are paying those with long positions, classically signaling a market dominated by bearish expectations.
Analysts highlight key resistance zone
Crypto market analyst BATMAN, sharing insights on June 17, noted that the SOL price had bounced off a level that previously acted as support but is now acting as resistance. In technical analysis, the shift from support to resistance is often seen as a negative structural change.
Mini glossary: The stochastic oscillator is a momentum indicator comparing a closing price to its price range over a certain period. An overbought reading suggests prices may be rising too quickly in the short term and momentum could be weakening.
The analyst also pointed out the stochastic indicator entered the overbought zone, similar to the period before the last significant high, supporting the view that downward movement may continue unless a strong buying wave emerges.
According to BATMAN, SOL reversed from a former support level that now acts as resistance. The analyst emphasized that the current overbought reading on the stochastic indicator resembles conditions before the last major peak.
Indicators paint a mixed picture
Zooming out, SOL is trading below its 50-day, 100-day, and 200-day exponential moving averages. The fact that all three indicators remain well above the latest price strengthens the existing downtrend.
On the daily chart, the relative strength index hovers around 44. While this remains under the neutral 50 threshold, it suggests some bounce-back from previous oversold conditions. Meanwhile, the MACD indicator has shown a bullish crossover, but analysts say more momentum is needed to confirm any trend reversal.
Key resistance levels on the upside are set at $74.75, $77.07, and $79.27. On the downside, initial support is found at $69.16, with a deeper pullback possibly reaching the last cycle low at $60.13. SOL’s 24-hour trading volume stands at $4.26 billion, while its market capitalization is $42.56 billion. In the same timeframe, the price declined by 0.56%.
