Solana (SOL) extended its losing streak on Friday, dropping below the key $90 threshold to trade near $89.65, its lowest level in two months. The broader cryptocurrency market experienced a significant selloff, resulting in more than $1 billion in liquidations across digital assets. SOL’s price was hit particularly hard, plunging over 6.5% in the single day.
ETF outflows and institutional sentiment
Investor appetite for Solana appears to be fading, with institutions scaling back on risk-sensitive assets amid heightened financial uncertainty. Solana-focused Exchange-Traded Funds (ETFs) listed in the US registered $1.18 million in net outflows on Thursday, according to data from SoSoValue. This marked the end of three sequential trading days without any fresh inflows or outflows.
Last week, SOL ETFs experienced a substantial $71.47 million in net outflows, setting a new record for weekly withdrawals. Persistent outflows from these investment vehicles suggest that institutional investors are reducing exposure, which could affect long-term demand for SOL.
At the same time, derivatives traders continued to pull back from Solana. The value of SOL futures open interest declined to $5.38 billion on Friday, a drop of 8% over the previous 24 hours, based on data from CoinGlass. In the derivatives market, closing or reducing positions generally signals reduced conviction among traders.
Significant long position liquidations marked Thursday’s session, with CoinGlass reporting that approximately $43.85 million in SOL futures were liquidated. Of this amount, about $40.21 million came from long positions, accounting for nearly 92% of the total liquidations in Solana futures. The remainder resulted from short position liquidations, totaling $3.64 million.
Mini dictionary: SoSoValue is a digital asset data analytics platform that tracks investment flows and performance metrics for major cryptocurrency funds and ETFs.
| Metric | Latest Value | Change/Period |
|---|---|---|
| US-listed SOL ETF net outflow | $1.18 million | Thursday |
| Weekly SOL ETF net outflow | $71.47 million | Last week (record) |
| Futures open interest | $5.38 billion | Down 8% in 24 hours |
| Futures liquidations | $43.85 million | Thursday |
| Long liquidations (portion) | $40.21 million | 92% of total |
Persistent outflows from Solana-focused ETFs and significant liquidations in the derivatives market have underscored weakening institutional sentiment, leaving SOL more vulnerable to downside pressure.
Technical outlook and key support levels
Solana’s technical trend remains negative as the cryptocurrency continues to trade below major moving averages. On Friday, SOL was priced around $90.06, extending losses into a sixth consecutive week. The token remains below its 200-day Exponential Moving Average (EMA), which is currently stationed at $99.62, a level closely watched by traders for signs of broader trend shifts.
Meanwhile, the 50-day EMA has declined to $101.92 and is nearing a crossover point with the 200-day EMA. Should the shorter-term moving average fall below the longer-term EMA, it would indicate a Death Cross, a pattern that historically is seen as signaling extended bearish momentum in price action.
Mini dictionary: A “Death Cross” occurs when a short-term moving average, typically the 50-day, crosses below a long-term moving average such as the 200-day. Traders often interpret this crossover as a bearish signal indicating further downside.
SOL is currently hovering above a long-term ascending support trendline, linking price lows recorded on June 6 and June 25, which now sits near $89.83. A breach of this trendline could quickly bring the next horizontal support at $87.21 into play. If this level fails to hold, technical analysis points to $70.58 as the next major support, a level last touched on August 1.
Momentum indicators further reinforce the bearish scenario. The daily Relative Strength Index (RSI) registers at 31, just above the oversold threshold of 30, while the Moving Average Convergence Divergence (MACD) continues to descend below its signal line, both highlighting prevailing negative momentum.
A sustained move above the $89 to $90 area would be needed for the first signs of stabilization. Should buyers succeed in reclaiming the 200-day EMA at $99.62, attention would turn to the 50-day EMA near $101.92 as short-term resistance. Restoring these levels could indicate a shift in sentiment away from the current bearish trend.
If Solana closes decisively below the $87.21 support zone, technical selling pressure could accelerate further, potentially driving the token toward $70.58, which marked a significant level in recent historical trading.
