Solana slides under $100 as selling pressure intensifies.

• Solana remains below the $100 level on Wednesday after shedding more than 6% in the previous session.
• Weakening retail sentiment alongside subdued institutional interest points to a growing bearish bias.
• From a technical perspective, rising selling pressure suggests further downside toward the $85 region.

Solana (SOL) remains below the $100 mark at press time on Wednesday, following a decline of more than 6% in the prior session amid broader weakness across the cryptocurrency market. Both institutional and retail interest in Solana continue to fade, even as on-chain metrics recorded a record 150 million daily transactions on Tuesday. From a technical standpoint, strengthening bearish momentum points to the risk of a further slide toward the $85 level.

Weakening demand reinforces downside risks amid deteriorating market conditions.

Solana continues to see robust on-chain user activity, with daily transaction volume reaching a record high on Tuesday. According to Blockworks data, the network processed over 150 million transactions during the day, averaging approximately 1,743 transactions per second.

Despite resilient on-chain activity, institutional inflows have stayed muted over the past three weeks, averaging no more than $9 million per day since January and including three sessions of net outflows. Data from Sosovalue shows that U.S. Solana-focused exchange-traded funds (ETFs) posted inflows of $1.24 million on Tuesday, following a $5.58 million inflow recorded on Monday.

Meanwhile, signals from the derivatives market point to a bearish tilt in Solana sentiment, accompanied by capital outflows. CoinGlass data shows that SOL open interest fell by 1.24% over the past 24 hours to $6.37 billion, suggesting capital exited the market through position closures or reduced leverage.

Liquidation data further highlights the bearish bias, with long liquidations totaling $22.31 million during the period—more than five times the $4.39 million in short liquidations.

In addition, Solana’s OI-weighted funding rate has slipped to -0.0238%, underscoring increasingly negative sentiment as traders holding or initiating short positions are willing to pay a premium to maintain them.

The waning bullish appetite for Solana mirrors the broader market downturn, which has seen total liquidations of around $735 million over the past 24 hours, including approximately $529 million from long positions.

Moreover, the broader cryptocurrency market remains under pressure, with the Fear and Greed Index falling to 14 on Wednesday—pointing to extreme risk-averse sentiment among investors. Without a meaningful improvement in market mood, Solana may face additional downside.

Technical Outlook: Is Solana headed toward $85?

Solana continues to trade below its 50-, 100-, and 200-day Exponential Moving Averages at $127, $139, and $153, respectively, keeping the broader trend firmly under pressure. The shorter-term EMAs remain positioned beneath the longer-term averages, forming a bearish alignment that has capped recent rebound attempts.

A sustained move below the $95 level would leave the S1 Pivot Point at $85 as the next downside target.

Momentum indicators remain decisively negative, with the MACD and signal line both trending lower and extending further into bearish territory on the daily chart. Meanwhile, the Relative Strength Index stands at 28 and is consolidating within oversold territory, a setup that could still allow for additional downside despite stretched conditions.

On the upside, a recovery back above the $100 level could shift focus toward the 50-day EMA near $127 as the initial upside objective.

Sources: Vishal Dixit