Solana’s latest price decline is unfolding against a broader period of weakness across the digital asset market, with traders increasingly shifting toward risk-off positioning. After weeks of steady losses, SOL has slipped below key technical levels, raising questions about whether current support can hold or if another leg lower is approaching. Open interest in Solana futures fell roughly 2% to about $5.09 billion, even as trading volume surged sharply, a combination often indicating liquidations rather than fresh buying activity.
Funding rates have turned negative, and the long-to-short ratio has dropped below 1, suggesting more traders are positioning for further dips. Short bias has also appeared among larger accounts despite retail traders maintaining leveraged long exposure on exchanges such as Binance and OKX. Analysts warn that this imbalance could increase the risk of additional volatility if support levels fail.
On-chain metrics reinforce a cautious stance. Glassnode indicates only about 20% of Solana addresses are currently in profit, the lowest since late 2023, a pattern seen in prior downturns near capitulation phases. Long-term holder accumulation has slowed as the price drops below $100, suggesting waning conviction among investors who previously absorbed supply during pullbacks. Near-term support clusters between $75 and $67, and a break below this region could open risk toward $62 or even $60, while resistance around $82–$83 remains a hurdle for any recovery.
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