Solana (SOL) is trading below $90 on Monday, Feb 9, with prices consolidating over the past three days. The token was unable to sustain its 11% gain from the previous Friday. The 14% drop in prices over the last week is still affecting market sentiment for major assets.
As of press time, Solana is trading at $83.14, according to CoinMarketCap data. The price is at a low point. The drop in prices has wiped out a large percentage of the token’s value due to low trading activity from institutional and retail traders in a weak market.
ETFs associated with Solana are also showing negative signs. SoSoValue data shows a loss of $11.86 million in outflows from SOL-based ETFs in the last week. Fidelity’s FSOL has yet to report its figures. The outflows come at a time when Bitcoin is correcting, which is affecting market risks as per SEC-regulated ETFs in the US.
Solana Struggles to Reclaim Momentum
In a post on X, CryptoPulse pointed out that Solana is trading below a resistance zone. The fair value gap is at $83, which is expected to be tested before a move up towards $90. The reaction at this point should be a clean one for a move up again.
However, the bullish scenario is no longer valid if SOL falls below $80. The market structure is extremely sensitive at present due to short-term price volatility. The prices at this point are still a crucial area of focus for traders.
Source: X
Moreover, another analyst, Man of Bitcoin, mentioned that the price moved at the wave 4 support level. The price moved to this level, near the 100% Fibonacci retracement level. The analyst added that the wave 5 price extension remains valid if SOL trades above $61.64.
The price could face some challenges at $141 and $215, but these levels could be relevant if the overall market environment improves. The overall environment is still bearish, and traders are selling their positions in top altcoins.
Source: X
Also Read: Solana (SOL) Weekly Structure Resets, Keeping $1,000 Cycle Target on the Table
Open Interest Declines as Selling Pressure Persists
According to CoinGlass data, the overall environment has slowed down, but traders are still selling their positions. The trading volume fell by 9.71%, reaching $10.05 billion. The open interest fell by 4.42%, reaching $5.16 billion. The OI Weighted Funding Rate is at -0.0173%.
Source: CoinGlass
RSI and MACD Highlight Weak Market Structure
The Relative Strength Index (RSI) remained at 27.88, while the signal remained at 30.95. The RSI has remained at this level, showing that traders are still selling their positions. The RSI is still showing that the price has made a limited move after declining.
The Moving Average Convergence Divergence (MACD) shows that the price has maintained its bearish momentum. The MACD line remained at -12.59, while the signal line is at -10.06. The histogram sits at -2.52, showing that traders are still selling their positions.
Source: TradingView
The downside pressure on Solana continues as its technical indicators show bearish signs. The ETFs and market participation also affect its price stability. Traders are focusing on the prices at $80 and $83, as they will determine the next major move.
Also Read: ASTER Rebounds With 75% Volume Spike – Analysts Target $0.90 Zone
