Solana (SOL) remained under pressure on Monday, trading around $86.25 after losing more than 3% of its value over the last 24 hours.
Although the cryptocurrency is attempting a modest recovery, its broader outlook remains bearish following a breakdown below a long-standing ascending support trendline.
The latest weakness extends Solana’s losing streak to five consecutive weeks, coinciding with sustained institutional withdrawals from Solana-focused Exchange-Traded Funds (ETFs).
Meanwhile, deteriorating derivatives market conditions, including declining Open Interest (OI), negative funding rates, and substantial long liquidations, suggest traders are becoming increasingly cautious.
With selling pressure showing few signs of easing, SOL could face another dip toward the $77 support area unless buyers regain control of key technical levels.
Solana ETF outflows approach $170 million as institutional demand weakens
Institutional investors have continued reducing their exposure to Solana, contributing to the cryptocurrency’s prolonged downturn.
According to SoSoValue, Solana-focused ETFs have recorded nearly $170 million in net outflows over the past five weeks.
The funds registered $26.25 million in withdrawals last week, extending their negative streak to five consecutive weeks.
This followed a particularly difficult period in October, when weekly outflows reached $71.47 million, the largest withdrawal during the current five-week stretch.
The outflows suggest institutional investors are not eager to increase their SOL exposure amid broader cryptocurrency market uncertainty.
For Solana, a return to positive weekly ETF flows could provide an early indication that institutional demand is stabilizing. However, continued withdrawals would likely reinforce the prevailing bearish outlook.
In addition to that, Solana’s derivatives market is also showing signs of deteriorating investor confidence, with traders steadily reducing their exposure to leveraged positions.
Data from CoinGlass shows that SOL futures Open Interest declined to $5.20 billion on Monday, its lowest level since August 19.
This is a massive decline from the October 8 peak of $7.62 billion, indicating that approximately $2.42 billion in outstanding futures positions have been closed.
The reduction in Open Interest, alongside falling spot prices, suggests that traders are exiting positions rather than aggressively positioning for a recovery.
SOL’s funding rate stands at -0.0033% on Monday, indicating that short-position holders are paying long-position holders, consistent with stronger demand for bearish exposure in the perpetual futures market.
Finally, over the last 24 hours, Solana recorded approximately $39.22 million in long liquidations, compared with just $2.37 million in short liquidations.
The imbalance suggests that leveraged bullish traders suffered significantly greater losses as SOL extended its decline.
Unless derivatives positioning stabilizes and buying demand improves, Solana could remain vulnerable to further selling pressure.
Solana technical outlook: SOL bears target the $77 support
Solana’s technical structure has weakened considerably following its breakdown below important support levels.
At the time of writing on Monday, SOL trades at $86.20, after breaking the $87.80 support level earlier today.
The cryptocurrency declined 8% last week after losing 19% throughout October, indicating a sustained selling pressure across multiple trading sessions.
More importantly, SOL remains below its 200-day Exponential Moving Average (EMA) at $99.26.
The breakdown suggests that a previously important support area may now act as resistance, potentially limiting near-term recovery attempts.
The declining 50-day EMA, currently around $100.35, is approaching the 200-day EMA at $99.26. A bearish crossover, commonly known as a death cross, would strengthen the case for a sustained downward trend.
Momentum indicators also remain unfavorable. The daily Relative Strength Index (RSI) stands near 27, placing SOL in oversold territory.
While this condition could encourage a temporary rebound, it does not necessarily indicate that the broader correction has ended.
Meanwhile, the Moving Average Convergence Divergence (MACD) remains negative, suggesting bearish momentum continues to dominate the market.
With the $87.80 support broken, Solana’s immediate demand zone now lies at $77.60, a strong EMA level that buyers must defend to prevent another wave of selling.
A decisive breakdown below this area could accelerate the decline toward $70.26, which represents the next significant support level.
SOL/USD Daily Chart
However, the oversold RSI suggests that a short-term relief rally remains possible, particularly if selling pressure begins to ease.
For a meaningful recovery, SOL must first reclaim the broken ascending trendline near $90.41.
A sustained move above this level could open the door for a retest of the horizontal resistance at $95.82, followed by the 200-day EMA near $99.26.
Further gains toward the 50-day EMA around $100.35 would improve the technical outlook and suggest buyers are beginning to regain control.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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