The crypto market has underperformed in the last 24 hours after an excellent performance earlier this week.
Solana’s SOL is the worst performer in the top 10, down 5% in the last 24 hours and now trading below $90.
The coin risks a bearish flip within a broader consolidation range.
However, data shows cumulative flow in Solana Exchange Traded Funds (ETFs) holds strong, indicating growing institutional demand.
Meanwhile, retail interest in SOL remains volatile, as a spike in long liquidations indicates declining demand.
Institutional demand for SOL remains strong
Institutional demand for Solana ETFs remains strong despite SOL underperforming since Thursday.
According to Bloomberg analyst Eric Balchunas, the steady rise in cumulative inflows in Solana ETFs peaked at $1.45 billion on Tuesday, up from $0.41 billion on October 23.
However, there have been minimal and occasional outflows, such as $5.23 million on Thursday.
This minimal outflow suggests that ETFs largely retain their holdings despite the SOL price falling below $100.
The analyst added that most of the ETF holdings come from 13F filings, backed by institutional investors focused on the long term.
On the other hand, retail confidence remains weak as yesterday’s pullback resulted in sharp liquidations.
According to CoinGlass, Solana recorded $11.91 million of total liquidations over the last 24 hours, led by $8.43 million of long positions.
This suggests a largely bullish positional wipeout.
The dip in SOL’s price also resulted in the long-to-short ratio declining to 0.996, which suggests a greater number of active bearish positions when below 1.
Finally, the SOL futures Open Interest (OI) is down 1% in the same time period, to $5.18 billion, indicating a decline in leverage exposure as risk-on sentiment fades.
Solana’s funding rate has dropped to -0.0078%, from 0.0067% earlier on Friday, suggesting a sharp increase in bearish interest among traders.
Will Solana attempt to break out above $100 soon?
The SOL/USD 4-hour chart remains bearish as Solana has underperformed in the last 24 hours.
The coin has dropped below $88 and is mildly bearish, trading below the downward-sloping 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs).
If the bearish trend continues, SOL is likely to test the $78.35 level.
Failure to bounce back from this area could see SOL extend its dip to the February 6 low at $67.50.
The technical indicators on the 4-hour chart remain strong, suggesting moderate downside momentum.
The Moving Average Convergence Divergence (MACD) remains above the signal line in the positive territory, hinting at a growing bullish impulse.
The Relative Strength Index (RSI) on the same chart read 57, above the midline, reinforcing a neutral-to-bullish tone.
If SOL is to embark on a sustainable recovery, it would need to close the daily candle above $92.11.
This would allow the bulls to challenge the 50-day EMA at $97.57 and the $100 psychological.
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