Highlights: Solana price has slipped below $100 to exchange hands at $96, marking a 6% slip today. The institutional demand is still low, showing w Highlights: Solana price has slipped below $100 to exchange hands at $96, marking a 6% slip today. The institutional demand is still low, showing w

Solana Price Analysis: SOL Risks Further Drop to $75 As Retail Demand Weakens

3 min read

Highlights:

  • Solana price has slipped below $100 to exchange hands at $96, marking a 6% slip today.
  • The institutional demand is still low, showing weakening investor confidence.
  • The technical picture shows SOL risks further downside towards $75-$50 levels.

Solana (SOL) is trading at less than $100 on Wednesday at press time, having suffered a 6% blow to $96 as the crypto market wobbles. The institutional and retail demand for Solana is still on a downslope trend. Technically, the outlook of SOL may see a downward drop to $75-$50 as more bearish momentum builds.

The institutional inflows have been low in the past three weeks. They have not exceeded $9 million per day since January, with three outflow days. According to Sosovalue data, the US SOL-Exchange-Traded Funds (ETFs) have indications of inflow amounting to $1.24 million on Tuesday.

Solana Price Analysis: SOL Risks Further Drop to $75 As Retail Demand WeakensTotal SOL Spot ETF Net Inflow: SoSoValue

At the same time, the derivatives market points to a slight positive mood of the market towards Solana in the midst of capital outflows. According to CoinGlass, SOL Open Interest (OI) has increased by 13.91% to $6.59 billion. This means that new money is entering the market and might soon spark a rebound in the SOL market.

Solana Price Analysis: SOL Risks Further Drop to $75 As Retail Demand WeakensSolana Derivatives Data: CoinGlass

Meanwhile, there is a bearish bias in the closing of positions with the long liquidations of $32.12 million, more than five times the short liquidations of $4.25 million. The long-to-short ratio also sits at 0.9531, as SOL risks further drop towards $75-$50 levels, due to mounting bearish grip.

SOL Price Risks Further Drop to $75-$50 Levels

Solana price has been in a steady downtrend and is currently trading at $96. The altcoin broke down from important support near $127, with sellers quickly pushing the price through the consolidation channel, with the 200-day Simple Moving Average (SMA) and the 50-day SMA, both turning into resistance.

The next major support zone is the $94-$85 level. This area saw strong buy interest earlier in the year and could attract new buyers if the price stabilises.​ Meanwhile, the above resistance sits around $127-$168, with the 50-day and 200-day SMAs ready to block any rebounds. If SOL can reclaim this area, a push higher to $200 might be possible, but selling pressure remains strong.

SOL/USD 1-day chart: TradingView

Key indicators confirm a negative outlook in the market. The Relative Strength Index (RSI) has dropped to 26.45, showing that Solana is heavily oversold, but it is not yet signalling any signs of a reversal. The MACD indicator (Moving Average Convergence Divergence) is bearish, with the blue MACD line below the orange signal line and both in negative territory, highlighting the intense selling appetite.​

Looking ahead, if the price fails to hold above $127, further losses towards $94-$85 could come swiftly. Moreover, popular crypto analyst Ali Martinez has predicted that the $74-$50 could be the next support zones for the altcoin. 

Source: X

​​For now, the outlook for SOL remains cautious. Short-term dips may provide opportunities for brave buyers, as the trend remains negative.

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