 ▲ Bitcoin, Solana/ChatGPT-generated image © |
As Bitcoin slid toward the $60,000 level, spreading fear across the broader market, Solana (SOL) also saw intensified selling pressure, breaking below the $70 support level. With investor outflows accelerating and derivatives indicators pointing to weakness, concerns over further downside have reached a peak.
According to investment-focused outlet FXStreet on February 6 (local time), Solana recorded losses of more than 23% this week alone, plunging to an intraday low of $67.50 on Friday. This marks a fourth consecutive week of declines since mid-January, with cumulative losses during that period reaching as high as 43%. The broader market downturn, driven by Bitcoin (BTC) falling to the $60,000 low, is seen as amplifying Solana’s losses.
Data from the derivatives market indicate that investor interest is rapidly fading. Based on CoinGlass data, Solana’s open interest fell to $5 billion on Friday, the lowest level since mid-April 2025. Compared with the January mid-month peak of $9 billion, market participation has contracted significantly.
Market sentiment also remains pessimistic. The long-to-short ratio stands at 0.96, below 1, suggesting that traders are betting on further price declines. In addition, the funding rate has turned negative at -0.035%, meaning short-position holders are paying fees to long-position holders, further underscoring the prevailing bearish bias.
Technical indicators are likewise warning of additional downside risk. On the daily chart, the Relative Strength Index (RSI) has dropped to 19, indicating extremely oversold conditions, yet strong selling momentum persists. The Moving Average Convergence Divergence (MACD) continues to reflect a negative outlook, with the death cross that occurred on January 19 remaining valid and red histogram bars expanding below the neutral line.
The outlet noted that after failing to break above the weekly resistance level of $126.65 on January 28, Solana lost even the psychologically important $100 support, entering a downward spiral. If the current selling pressure persists, the next major support could be tested at $60. Even if a rebound materializes, the initial upside target is expected to be limited to around $89.30, the low recorded on Wednesday.
*Disclaimer: This article is provided for reference only, and no responsibility is assumed for any investment losses incurred based on its content. The information should be interpreted solely for informational purposes.*