Solana (SOL) edges lower by 3% at press time on Monday, extending the 4% drop from Sunday amid US-Europe tensions over Greenland. Derivatives data signals a downside bias, in line with the broader market pullback, expecting further decline in SOL. Solana futures Open Interest (OI) is down roughly 7% over the same time frame to $8.19 billion, consistent with the long liquidations. The funding rate of -0.0004% indicates a sell-side bias as traders build new positions.
On the institutional side, the US spot SOL ETFs recorded $46.88 million in inflows last week. However, changes in market dynamics could negatively impact institutional confidence, risking further selling pressure on Tuesday. The US market is closed on Monday for Martin Luther King Jr. Day.
Solana remains under intense selling pressure, trading near $130 and below the 20-day and 50-day EMAs at $137-$138, tilting the near-term bias lower. A steady downward trend in Solana could breakdown the rounding bottom chart pattern from the December 18 low at $116. The MACD indicator crosses below the signal line on the daily chart, with the histogram turning negative and suggesting strengthening bearish momentum. On the upside, the initial resistance sits at the supply zone near $148, and a sustained break above it could open room toward the 200-day EMA at $159.
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