Solana Breaks Below $100 Support Amid Record Network Traffic As of Wednesday, Solana (SOL) is trading below the $100 psychological threshold, following a 6% decline on Tuesday triggered by a broader market pullback. Despite a cooling in retail and institutional demand, Solana’s on-chain activity remains remarkably high. Data from Blockworks indicates the network processed a record-breaking 150 million transactions on Tuesday, averaging approximately 1,743 transactions per second (TPS). From a technical perspective, however, the outlook remains bearish, with analysts warning of a potential slide toward the $85 support zone as selling pressure mounts
Institutional Interest Remains Subdued Despite Network Growth While on-chain activity is booming, institutional participation has remained relatively muted over the past three weeks. Daily inflows have struggled to surpass the $9 million mark since January, including three days of net outflows. However, recent data from Sosovalue shows a slight uptick in sentiment; US-based Solana ETFs attracted $1.24 million on Tuesday, following a more substantial $5.58 million entry on Monday.
Bearish Sentiment Dominates Solana Derivatives Market Derivatives data further confirms a bearish outlook for Solana as capital continues to exit the market. According to CoinGlass, Solana’s Open Interest (OI) contracted by 1.24% over the last 24 hours, settling at $6.37 billion. This decline suggests that traders are actively closing out positions or deleveraging.
The liquidation profile remains heavily skewed toward the downside; long liquidations reached $22.31 million—over five times the $4.39 million seen in short liquidations. Moreover, the OI-weighted funding rate has dipped to -0.0238%, reflecting an environment where short-sellers are dominant and willing to pay a premium to maintain their bearish bets.
The waning bullish sentiment for Solana aligns with a massive broader market sell-off. In the last 24 hours, total market liquidations reached approximately $735 million, with long positions bearing the brunt of the damage at $529 million.
Broader Market Fragility: Extreme Fear Grips Investors” The wider cryptocurrency landscape continues to soften, with the Fear and Greed Index plunging to a score of 14 this Wednesday. This reading indicates a state of ‘Extreme Fear,’ reflecting a high level of risk aversion across the board. Unless there is a significant shift in investor sentiment, Solana remains vulnerable to additional downward pressure.
Technical Analysis: Is a Drop to $85 Imminent for Solana? Solana is currently trading below its 50, 100, and 200-day Exponential Moving Averages (EMAs)—positioned at $127, $139, and $153, respectively. This “bearish stack” keeps the price under significant pressure, as short-term averages continue to slope downward. Should SOL break the $95 mark, the path of least resistance points toward the S1 Pivot Point at $85.
Indicator data further supports this downside bias. The MACD is trending deeper into negative territory, while the RSI has dipped to 28. Entering this oversold zone often signals intense bearish momentum, which could accelerate the current sell-off before any potential reversal occurs.
On the upside, should Solana reclaim the $100 level, the focus would likely shift toward the 50-day EMA at $127 as the initial recovery target.
