Required containers
- Solana (SOL) traded lower on Monday, extending its bullish streak since early July.
- Institutional demand remains subdued, with SOL ETFs registering less than $1 million in capital for the second week in a row.
- Futures Open Interest fell while trading volume rose 78%, indicating market volume but limited sentiment.
Solana (SOL) fell on Monday, continuing its recent uptrend as industry and commodity indicators signaled a slowdown in demand.
Although trading activity has increased significantly over the past 24 hours, the decline in futures and the volatility of exchange-traded funds (ETFs) suggest that investors should be cautious about the direction of the index.
The combination of slowing institutional participation and the growth of bearish sentiment has pushed SOL below significant levels of technical resistance.
Institutional investors continue to love Bitcoin and Ethereum
Demand for Solana’s cash-generating products remained subdued last week.
According to CoinGlass data, SOL exchange-traded funds (ETFs) pulled in an average of $948,210 in total admissions, following last week’s $930,430.
Although the entries remained positive, they were much less than those recorded by the two main cryptocurrencies: Bitcoin ETFs, with $ 75.67 million in weekly entries, and Ethereum ETF with $ 105.44 million in weekly entries.
These figures suggest that investors continue to allocate funds to traditional digital assets instead of increasing Solana’s exposure.
The retail trade activity grew significantly despite the recent price weakness. CoinGlass data shows that futures trading jumped 78% to $5.37 billion in the past 24 hours. Meanwhile, Open Interest (OI) fell slightly to $4.77 billion.
The combination of high trading volume and low Open Interest usually indicates that a position has been closed rather than a new position being established.
At the moment, the money supply is little changed, falling to about 0.0023%, which shows that traders are willing to pay to keep a small position.
This change reflects the growth of bearish sentiment among emerging market traders despite the market’s uptrend.
Solana price prediction: Will SOL fall to $70?
From a technical perspective, Solana continues to trade within a long-term bearish trend.
On the four-hour chart, SOL remains below the 50-time EMA at $76.32 and the 200-time EMA at $76.51.
These moving averages continue to act as resistance at the same time, reducing the signal’s testing.
Technical indicators present a mixed picture. The Relative Strength Index (RSI) is hovering around 49, indicating a neutral position with neither buyers nor sellers having a choice.
Meanwhile, the Moving Average Convergence Divergence (MACD) has changed modestly, suggesting that buying pressure is intensifying.
However, the bullish momentum remains too weak to overcome the current bearish trend.
If the sale continues, traders will watch the following stages:
- $73.50 – S1 Pivot Support.
- $ 72.80 – Low quality support.
- $70.62 – S2 Pivot support.
A definite move below the $72.80–$73.50 support could accelerate losses to $70.62.
For a better view of the development, Solana should start to break above its lows near $77.27.
If the buyers take this level again, the next targets will be the resistance of $81.92.
A sustained close above the trendline would weaken the bearish structure and increase the chance of a recovery.
Solana continues to face challenges in the corporate and retail markets. Despite the boom in trading, low open interest rates, weaker bond yields, and lower ETF holdings suggest that investors remain cautious.
Unless SOL breaks above the resistance level of $77.27, the correction that started at the beginning of July may continue, with $70.62 appearing as the next major target.
