Solana Falls for Six Straight Weeks, Will the $76.45 Support Level Give Way?

▲ Solana (SOL) ©

Solana (SOL) has been unable to escape a six-week losing streak and is now at risk of breaking a critical support level. Overtly bearish bets in the derivatives market combined with declining technical momentum are fueling pessimism that the price could plunge into the $60 range, deepening fear across the market.

According to investment media outlet FXStreet on February 23 (local time), Solana fell 6% intraday on Monday, approaching the lower bound support of its range at $76.45. Following a nearly 4% drop last week, the token has extended its six-week downtrend that began in mid-January. If it decisively closes below the $76.45 support on a daily basis, there is a high risk it could extend losses to $67.50, the low recorded on February 6.

Data from the derivatives market also supports a clear bearish bias. According to CoinGlass, Solana’s long-to-short ratio fell to 0.89, the lowest level in a month. A ratio below 1 indicates a rise in traders betting on price declines, reflecting prevailing bearish sentiment in the market.

The funding rate indicator further reinforces the negative outlook. Solana’s funding rate, which turned negative last Saturday, currently stands at around -0.0245%, tracing a pattern similar to the sharp drop seen on February 6. A negative funding rate indicates that short sellers are paying long holders, serving as clear evidence of intensified selling pressure in the market.

Technical indicators also point to mounting downside pressure. The 14-day Relative Strength Index (RSI) stands at 31 and is trending downward toward oversold territory, suggesting that bearish momentum is gaining strength. Meanwhile, the Moving Average Convergence Divergence (MACD) lines are converging, reflecting traders’ cautious stance as they assess the market’s direction.

However, the possibility of a rebound remains. If Solana successfully defends the $76.45 lower consolidation level as firm support, it could stage a relief rally toward the upper consolidation zone at $89.38.

Disclaimer: This article is for investment reference purposes only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.