Solana momentarily fell below $ 100

The price of Solana SOL $105.17 Binance-Peg SOL 3.12% Market capitalization $0.12 billion VOL. 24 hours $0.67 billion dropped below $ 100 on Monday, February 2. Over the past week, the coin has lost 15%. The drop in price is confirmed by data from the derivatives market: the number of short positions is growing, and the funding rate has become negative, indicating the dominance of bearish sentiment.

According to Coinglass, the OI-Weighted Funding Rate for SOL was -0.0080% on Monday. This means that traders with short positions are paying off the holders of long positions. The ratio of long to short positions is 0.97, which also indicates expectations of further decline.

Institutional interest in Solana is weakening. According to SoSoValue, $ 2.45 million was withdrawn from ETFs trading in SOL last week. This is the first case of outflows since the funds were launched, and a continuation of the trend could increase pressure on the market.

Technical analysis shows that Solana failed to gain a foothold above the resistance level of $ 126.65. By Sunday, the price had dropped by more than 15% and fell below the psychological mark of $ 100. On Monday, SOL was trading at $ 99.60. Closing the day below $ 100 could open the way to a drop to $ 95.26, and in case of further correction, to $ 79, the January 2024 low.

Indicators confirm the bearish momentum. The Relative Strength Index (RSI) on the daily chart is 25, which signals oversold conditions. The MACD has been showing a bearish crossover signal since January 19, and the histograms remain below the neutral level. If the rate recovers, the resistance level of $ 126.65 will be a potential upside target.