As Bitcoin Tumbles, Solana Falls Below $80, Can It Hold the $75 Support Level?

▲ Bitcoin (BTC), Solana (SOL)/ChatGPT-generated image ©

As Bitcoin, the leading cryptocurrency, collapses and a wave of bloodshed sweeps across the broader market, Solana (SOL) has also entered a desperate battle for survival as its key support level comes under threat. While retail investors in the derivatives market have panicked and rushed to sell, institutional investors have poured funds into spot exchange-traded funds (ETFs) for nine consecutive days, revealing a stark contrast in sentiment.

According to investment media outlet FXStreet on February 24 (local time), Solana fell 6% the previous day and has extended its decline for three straight sessions, currently trading precariously below the $80 level. Intensified selling pressure across the market, compounded by Bitcoin surrendering the $64,000 mark, has heavily weighed on Solana.

Despite the severe downturn, institutional enthusiasm for Solana remains firm. Data from cryptocurrency analytics platform SoSoValue shows that U.S.-listed spot Solana ETFs recorded $7.99 million in inflows on Monday alone, marking nine consecutive trading days of net inflows. In contrast, sentiment in the derivatives market, as reflected by CoinGlass data, has frozen. Open interest in Solana futures shrank 1.44% over the past 24 hours to $4.92 billion, underscoring strong risk-off sentiment.

Notably, forced liquidations of long positions in the derivatives market reached $15.97 million, far exceeding $3.46 million in short liquidations. As long positions were heavily wiped out, the long-to-short ratio fell to 0.9627, confirming that short positions have gained the upper hand. The funding rate also turned negative at -0.0027%, further indicating that traders are leaning toward downside bets.

Technical indicators also warn that Solana’s short-term recovery momentum has dissipated. The price is trading below both the 50-day and 200-day exponential moving averages, signaling a bearish bias, while the daily relative strength index stands at 31, nearing oversold territory. The moving average convergence divergence (MACD) indicator is also bending toward the signal line below the zero line, suggesting the fading of bullish momentum. Analysts are closely watching the 23.6% Fibonacci retracement level at $75.74 as the primary line of defense, warning that a break below this support could trigger a sharp decline toward $67.50, the February 6 low, and potentially down to $61.48.

However, if strong institutional buying helps defend the key support level and sparks a rebound, Solana could first target a recovery toward $91.26, the February 15 high. Breaking above the $102.90 resistance level, where the 50-day exponential moving average stands, will be the critical task for a full-fledged return to an upward trend.

*Disclaimer: This article is for investment reference purposes only, and we are not responsible for any investment losses resulting from reliance on it. The information provided should be interpreted solely for informational purposes.*