Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
Solana’s $100 support breaks – SOL traders should watch THESE 2 levels
Solana [$SOL] breached the $100 support and fell to $98 before rebounding slightly. At reporting, $SOL traded around $99.90, marking a 1.8% daily decline.
The drop pushed $SOL below its 9-day and 21-day Moving Averages, reflecting growing short-term bearish pressure. It also liquidated traders who had bet on continued upside.
CoinGlass data showed over $10 million in Long Liquidations.
Why are Solana traders reducing exposure?
As Solana [$SOL] declined, investors seem to have panicked and increased selling significantly.As a result, the Derivatives market turned red.
Derivatives volume dropped 8% to $7.1 billion while the Open Interest rest fell 3%.Also, Options volume and Options OI both declined 5% and 10%, respectively.
Together, these declines showed reduced participation across Solana’s Derivatives Market.
However, the figures did not prove that institutional investors specifically reduced exposure. At the same time, Futures Outflows reached $1.78 billion, exceeding $1.69 billion in Futures Inflows.
Futures Netflow fell to -$86 million, showing sell-side flows exceeded buy-side flows.
Declining Derivatives activity often signals uncertainty as traders reduce exposure or wait on the sidelines.
Lower speculative participation can weaken near-term demand, though it may reduce leverage-driven volatility. That caution appeared in the Spot Market too.
Spot Netflow turned positive after remaining negative for five consecutive days.
Spot Netflow rose to $2.8 million at press time, also confirming selling pressure. With sellers active on both sides, they present another risk for a pullback.
What momentum indicators suggest
On a short term basis, the trend is leaning bearish as evidenced by the 21 day and 9 day Moving averages. At the same time, the Bulls V Bears indicator has held negative for two consecutive days.
A negative value here suggests that active traders are mostly sellers.Historically, such market set up has preceded short term price drops.
Thus, if pressure continues, we could see Solana drop towards $93, with a drop below $90 on the table.To invalidate the current bearish outlook, $SOL needs a daily close above $102.
Final Summary
- Solana [$SOL] breached the $100 support and fell to a low of $98, then slightly rebounded
- Solana bulls were forced out, with longs liquidations exceeding $10 million triggering a wave of panic exits.
Source: cryptonews.net