- Solana Price Outlook: SOL shares fall below the 50-day exponential moving average despite renewed investment inflows into exchange-traded funds:
Solana stock (SOL) is trading below $80 at the time of writing this report on Friday, after two consecutive days of losses tied to overall market conditions and a breach of the Solana-based Drift protocol. Institutional confidence in Solana shows early signs of stabilization, with cash flows nearing $1 million on Thursday, while derivatives data indicate the downtrend is still in place. Technical analysis for Solana stock highlights the last lines of defense near $75 and $67.
- Are Institutions Returning to the SOL System?
Institutional demand for Solana showed signs of recovery on Thursday, after a $6.17 million outflow on Monday. U.S. spot Solana ETFs (ETFs) recorded inflows of $932,850 on Thursday, following two days of limited activity. This marks the first inflow since March 24, suggesting a potential new phase of institutional accumulation.
SOL ETF data. Source: Sosovalue
- Sellers tighten their grip on Solana derivatives
Bullish activity in Solana derivatives declined, with total liquidations over the past 24 hours reaching $11.87 million, driven by liquidations of $9.45 million in long positions, indicating forced exits amid a sharp drop in the spot market price. High liquidations of long positions often lead to an imbalance in positions due to an increased number of active short positions, as reflected by the long-to-short ratio of 0.9643.
Meanwhile, Solana’s open interest-weighted funding rate stood at 0.0004% on Friday, reflecting trader hesitation, with open interest rising by roughly 1% over the past 24 hours to $5.18 billion.
Solana derivatives data. Source: CoinGlass
Will Solana continue its losses below $80?
The SOL/USDT pair is trading at $79.61 at the time of writing this report on Friday. The pair is consolidating below the 50-, 100-, and 200-day exponential moving averages, all of which are trending upward above $89, confirming bearish trend dominance.
The Moving Average Convergence Divergence (MACD) line is below the signal line on the daily chart, while the negative histogram bars are expanding, indicating increasing bearish momentum. At the same time, the Relative Strength Index (RSI) at 38 shows mounting downside pressure, but it has not yet reached the oversold zone, supporting a bearish near-term bias within a long-term bullish structure.
Immediate support for Solana is at the February 24 low of $75.63, with a clear break revealing the February 6 low of $67.50 as the next downside target.
SOL/USDT pair chart analysis (Binance)
Daily price chart of the SOL/USDT pair.
On the positive side, initial resistance is at the 50-day exponential moving average of $89.65, where a daily close above it would be necessary to ease selling pressure.
$SOL
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