Solana Nears $80 Support as Futures Liquidations Rise
Solana (SOL) is testing the important $80 support level after a sharp decline, with futures data pointing to rising liquidation risk. Derivatives metrics — falling open interest and negative funding rates — indicate leveraged long positions are being closed, increasing forced selling pressure. Continued long liquidations could push SOL below $80 toward $75 and potentially into the $70–$60 range if momentum persists. Technical patterns (weekly head-and-shoulders and a bear flag) and momentum indicators favor sellers, though RSI readings near oversold suggest short-term rebound possibilities. Short-term resistance sits between $83 and $90. On-chain fundamentals show longer-term institutional activity: tokenized RWA on Solana rose ~59% QoQ to $1.1B and TVL approaches $10B, driven by tokenized treasury products and institutional yield offerings. Traders should watch whether $80 holds; a confirmed breakdown may trigger further liquidations and deepen the correction, while a hold and reclaim of $83–$90 could stabilize sentiment and reduce liquidation pressure.
Bearish
Short-term outlook is bearish. Derivatives data — falling open interest and negative funding rates — plus accelerated long liquidations indicate deleveraging that can amplify downward moves via forced selling. Technical structures (weekly head-and-shoulders, bear flag) and momentum indicators favor sellers; short-term resistance at $83–$90 is weak while $80 is a clear psychological and technical pivot. Although RSI suggests short-term oversold conditions that may produce rebounds, those would likely be relief rallies unless buyers reclaim $83–$90 and open interest/funding dynamics normalize. Historically, similar setups (leveraged long liquidation + negative funding) have led to rapid downside extensions in altcoins. Longer-term fundamentals (RWA growth, higher TVL) provide a stabilizing narrative for institutional adoption, but they don’t prevent short-term liquidation cascades. Traders should manage risk by watching funding rates, open interest, and liquidation clusters; set tight stops below $80 and consider reduced position sizes until on-chain and derivatives metrics show stabilization.