Solana (SOL) trades near $84 on Monday and continued to consolidate in a tight range, limiting the token’s movement. Institutional inflows were positive for the token, although declining retail flows restrained the token’s price momentum.
According to SoSoValue data, US spot SOL ETFs saw a total of $44.44 million in inflows last week. On Wednesday, a single-day inflow of $30.86 million, indicating robust flows from larger investors, restrained the token’s decline during the consolidation period.
Source: SoSoValue
SOL Triangle Pattern Near Breakout
Analyst More Crypto Online highlighted that SOL has been moving sideways for three weeks. The pattern resembles a maturing triangle, which often forms before a sharp breakout. A move above the recent high of $88.60 would show that the bulls are taking control of the market.
A triangle is a strong technical pattern because the volatility is low before the breakout occurs. Once the market breaks out of the triangle, there is a buildup of energy that causes a rapid move upwards. The market structure is being closely monitored for early signs of a breakout.
Source: X
Open Interest Drops as Liquidations Rise
The sentiment of the market has weakened due to geopolitical tensions in the Middle East. CoinGlass data shows that SOL futures open interest declined to $4.89 billion on Monday, a drop of more than 6% in 24 hours.
The $26.47 million in liquidations over the same period. Long liquidations totaled $20.47 million, indicating a broad reduction in bullish positions.
Also Read: BONK Holding Key Support, Next Upside Target Remains $0.0076
Despite the decline in open interest, funding rates remained positive at 0.0037%. This indicated that traders were continuing to pay premiums to hold their positions, although it was insufficient to produce a breakout.
Source: CoinGlass
SOL Stays Range-Bound Below Key EMAs
The token ranges between $77.60 and $93.43, extending the range established since early February. The bias is neutral with a slightly bearish tone since the price is below the 50-day and 200-day EMAs at $99.06 and $137.23, respectively.
The Moving Average Convergence Divergence (MACD) moved above its signal line after rising from negative territory. The flattening histogram indicated diminishing upside power and reduced the chances of a strong acceleration. The RSI stood at 44, showing soft demand and cautious sentiment.
Source: TradingView
Support at $77.60 remained, which led to some retracement moves last month. Breaking below this point could potentially push the token towards the February 6 low at $67.50. This is considered a major test for the broader structure.
For upside movement, altcoin needs to close above $93.43, which would open the doors for the 50-day EMA at $99.06. Breaking above the level would be positive for the short-term trend. The next resistance point would be the 200-day EMA at $137, which has stronger resistance.
Also Read: Solana (SOL) Stays Range-Bound While ETF Demand Surpasses $900M
