Key takeaways
- Solana (SOL) stock traded lower on Monday, continuing its corrective trend since early July.
- Institutional demand remains weak, with SOL ETFs recording inflows of less than $1 million for the second week in a row.
- Futures open interest fell while trading volume rose 78%, indicating increased market activity but weaker sentiment.
Solana (SOL) stock fell on Monday, extending its recent correction as institutional and retail market indicators pointed to weak demand.
Although trading activity has picked up sharply over the past 24 hours, declining futures positions and exchange-traded fund (ETF) inflows suggest that investors remain cautious about the token’s near-term outlook.
The combination of slowing institutional participation and growing bearish sentiment has kept SOL below key technical resistance levels.
Institutional investors continue to favor Bitcoin and Ethereum
Demand for Solana-focused investment products remained weak last week.
According to CoinGlass data, SOL Exchange Traded Funds (ETFs). It attracted approximately $948,210 in net inflows, following $930,430 the previous week.
While inflows remained positive, they were significantly lower than those recorded by the two largest cryptocurrencies: Bitcoin ETFs, with weekly inflows of $75.67 million, and Ethereum ETFs with weekly inflows of $105.44 million.
The numbers suggest that institutional investors continue to allocate capital towards more established digital assets rather than increasing exposure to Solana.
Retail activity rose sharply despite recent weakness in prices. Coinglass data It shows that futures trading volume jumped 78% to $5.37 billion over 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 closing positions rather than creating new bullish positions.
Meanwhile, financing rates turned slightly negative, falling to around 0.0023%, suggesting that traders are increasingly willing to pay to maintain short positions.
This shift indicates increasing bearish sentiment among financial derivatives traders despite increased market activity.
Solana Price Forecast: Will SOL Price Drop Toward $70?
Technically, Solana continues to trade within a short-term bearish structure.
On the four-hour chart, SOL remains below the 50-period moving average at $76.32 and the 200-period moving average at $76.51.
These moving averages continue to act as immediate resistance, limiting attempts to redeem the token.
Technical indicators present a mixed picture. The Relative Strength Index (RSI) is hovering around 49, indicating neutral momentum with neither buyers nor sellers gaining a decisive advantage.
Meanwhile, the Moving Average Convergence Divergence (MACD) has turned modestly positive, indicating that buying pressure is gradually improving.
However, the upward momentum is still too weak to overcome the prevailing downtrend line.
If selling pressure continues, traders will watch the following support levels:
- $73.50 — S1 Pivot Support.
- $72.80 — Descending trend line support.
- $70.62 — Pivotal S2 Support.
A decisive move below the $72.80-$73.50 support zone could accelerate losses towards $70.62.
For the bullish outlook to improve, Solana must first break the downside resistance trend line near $77.27.
If buyers reclaim this level, the next upside targets would be the $81.92 resistance level.
A sustained close above the trend line would weaken the current bearish structure and increase the likelihood of a broader recovery.
Solana continues to face headwinds from institutional and retail markets. While trading activity is up, low open interest, weak funding rates, and modest ETF inflows suggest investors remain cautious.
Unless SOL breaks the $77.27 resistance level, the correction that began in early July is likely to continue, with $70.62 emerging as the next major downside target.
