Solana fails to reach $ 100 level

On Wednesday, February 4, the Solana digital token SOL $94.72 Binance-Peg SOL -8.19% Market capitalization $0.1 billion VOL. 24 hours $0.57 billion dropped below $ 100 after falling by more than 6% the day before. The decline in the price of the digital asset occurred amid a large-scale sell-off in the crypto market. Demand for the token from institutional and retail investors is declining, despite the record 150 million transactions per day recorded on Tuesday.

According to Blockworks, the Solana network processed 1,743 transactions per second that day. At the same time, institutional interest remains weak: since the beginning of January, daily inflows into SOL-oriented ETFs have not exceeded $ 9 million, and on some days, net outflows have been recorded. On Tuesday, ETF inflows totaled $ 1.24 million after $ 5.58 million on Monday, according to Sosovalue.

Bearish sentiment dominates the derivatives market. According to CoinGlass, the open interest in SOL contracts decreased by 1.24% overnight to $ 6.37 billion. Liquidations of long positions reached $ 22.31 million against only $ 4.39 million for short positions, indicating an advantage for sellers. The funding rate dropped to -0.0238%, which means that traders are willing to pay a premium for shorts.

The overall market is also weakened, with $ 735 million worth of positions liquidated over the past 24 hours, of which $ 529 million were long. The Fear and Greed Index is at 14, signaling panic among investors.

From a technical standpoint, Solana is trading below its 50-, 100-, and 200-day exponential moving averages ($ 127, $ 139, and $ 153), which reinforces the bearish trend. The MACD remains in a deep negative zone, and the RSI at 28 indicates oversold conditions. If the price falls below $ 95, the next target will be $ 85 support. A return above $ 100 could open the way to a test of the 50-day EMA at $ 127.