Solana [SOL] breached the $100 support and fell to $98 before rebounding slightly. At reporting, SOL traded around $99.90, marking a 1.8% daily decline.
The drop pushed SOL below its 9-day and 21-day Moving Averages, reflecting growing short-term bearish pressure. It also liquidated traders who had bet on continued upside.
CoinGlass data showed over $10 million in Long Liquidations.
Why are Solana traders reducing exposure？
As Solana [SOL] declined, investors seem to have panicked and increased selling significantly. As a result, the Derivatives market turned red.
Derivatives volume dropped 8% to $7.1 billion while the Open Interest rest fell 3%. Also, Options volume and Options OI both declined 5% and 10%, respectively.
Source: CoinGlass
Together, these declines showed reduced participation across Solanas Derivatives Market.
However, the figures did not prove that institutional investors specifically reduced exposure. At the same time, Futures Outflows reached $1.78 billion, exceeding $1.69 billion in Futures Inflows.
Source: CoinGlass
Futures Netflow fell to -$86 million, showing sell-side flows exceeded buy-side flows.
Declining Derivatives activity often signals uncertainty as traders reduce exposure or wait on the sidelines.
Lower speculative participation can weaken near-term demand, though it may reduce leverage-driven volatility. That caution appeared in the Spot Market too.
Spot Netflow turned positive after remaining negative for five consecutive days.
Source: CoinGlass
Spot Netflow rose to $2.8 million at press time, also confirming selling pressure. With sellers active on both sides, they present another risk for a pullback.
What momentum indicators suggest
On a short term basis, the trend is leaning bearish as evidenced by the 21 day and 9 day Moving averages. At the same time, the Bulls V Bears indicator has held negative for two consecutive days.
Source: TradingView
A negative value here suggests that active traders are mostly sellers. Historically, such market set up has preceded short term price drops.
Thus, if pressure continues, we could see Solana drop towards $93, with a drop below $90 on the table. To invalidate the current bearish outlook, SOL needs a daily close above $102.
Final Summary
- Solana [SOL] breached the $100 support and fell to a low of $98, then slightly rebounded
- Solana bulls were forced out, with longs liquidations exceeding $10 million triggering a wave of panic exits.