Key takeaways
- Solana (SOL) traded lower on Monday, extending its corrective trend from early July.
- Institutional demand remains subdued, with SOL ETFs recording less than $1 million in inflows for a second consecutive week.
- Futures Open Interest declined while trading volume surged 78%, pointing to increased market activity but weaker conviction.
Solana (SOL) edged lower on Monday, continuing its recent correction as both institutional and retail market indicators pointed to weakening demand.
Although trading activity has picked up sharply over the past 24 hours, declining futures positioning and muted exchange-traded fund (ETF) inflows suggest investors remain cautious about the tokens near-term outlook.
The combination of slowing institutional participation and growing bearish sentiment has kept SOL under key technical resistance levels.
Institutional investors continue to favor Bitcoin and Ethereum
Demand for Solana-focused investment products remained subdued last week.
According to CoinGlass data, SOL exchange-traded funds (ETFs) attracted approximately $948,210 in net inflows, following $930,430 the previous week.
While inflows remained positive, they were significantly lower than those recorded by the two largest cryptocurrencies: Bitcoin ETFs, with $75.67 million in weekly inflows, and Ethereum ETFs with $105.44 million in weekly inflows.
The figures suggest institutional investors continue allocating capital toward more established digital assets rather than increasing exposure to Solana.
Retail trading activity increased sharply despite the recent price weakness. CoinGlass data shows that the futures trading volume jumped 78% to $5.37 billion over the past 24 hours. Meanwhile, the Open Interest (OI) slipped slightly to $4.77 billion.
The combination of rising trading volume and declining Open Interest typically suggests positions are being closed rather than new bullish positions being established.
Meanwhile, funding rates have turned slightly negative, falling to approximately 0.0023%, indicating traders are increasingly willing to pay to maintain short positions.
This shift points to growing bearish sentiment among derivatives traders despite elevated market activity.
Solana price prediction: Will SOL fall toward $70？
From a technical perspective, Solana continues to trade within a short-term bearish structure.
On the four-hour chart, SOL remains below both the 50-period EMA at $76.32 and the 200-period EMA at $76.51.
These moving averages continue to act as immediate resistance, limiting the tokens recovery attempts.
Technical indicators present a mixed picture. The Relative Strength Index (RSI) is hovering around 49, indicating neutral momentum with neither buyers nor sellers holding a decisive advantage.
Meanwhile, the Moving Average Convergence Divergence (MACD) has turned modestly positive, suggesting buying pressure is gradually improving.
However, the bullish momentum remains too weak to overcome the prevailing downward trendline.
If selling pressure continues, traders will be watching the following support levels:
- $73.50 — S1 Pivot support.
- $72.80 — Descending trendline support.
- $70.62 — S2 Pivot support.
A decisive move below the $72.80–$73.50 support zone could accelerate losses toward $70.62.
For the bullish outlook to improve, Solana must first break above its descending resistance trendline near $77.27.
If buyers reclaim this level, the next upside targets become the $81.92 resistance.
A sustained close above the trendline would weaken the current bearish structure and increase the probability of a broader recovery.
Solana continues to face headwinds from both institutional and retail markets. While trading activity has surged, declining Open Interest, weakening funding rates, and modest ETF inflows indicate investors remain cautious.
Unless SOL breaks above the $77.27 resistance level, the correction that began in early July is likely to continue, with $70.62 emerging as the next major downside target.
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