Solana is trading under pressure at the start of the week, struggling to regain momentum after failing to hold above key resistance levels.
The token is currently trading at $86.55, down 1.91% in the last 24 hours and nearly 7% over the past week.
Source: CoinMarketCap
Weak technical signals, declining derivatives activity, and rising geopolitical tensions are combining to keep sentiment cautious, limiting the scope for a near-term recovery in SOL.
Price holds below resistance
Solana’s recent attempt to push above $92 failed to sustain, triggering a fresh wave of selling.
The price slipped below the $90 and $88 levels, accelerating losses as it dropped under $87.20 and formed a low near $85.10.
SOL is now consolidating below the 23.6% Fibonacci retracement level of the move from $90.81 to $85.10.
It is also trading beneath the 100-hour simple moving average, reflecting continued short-term weakness.
On the upside, resistance is building near $88, reinforced by a bearish trend line on the hourly chart. The next barrier stands at $88.60, followed by the key $90 zone.
A decisive move above $90 could shift momentum and open the path toward $95 and $102.
Downside pressure builds
If Solana fails to reclaim the $88 resistance, further downside remains likely. Initial support sits at $85, with stronger levels at $82 and $80.
A break below $82 could push the price toward $80, while a close under that level may expose $74 in the near term.
This would reinforce the broader downward structure that has emerged over recent sessions.
Momentum indicators support this cautious stance.
The hourly MACD is strengthening in bearish territory, while the RSI remains below 50, indicating weak buying pressure and limited upside momentum.
Geopolitical tensions hit crypto sentiment
Crypto markets are starting the week on a softer note as tensions in the Middle East intensify.
Concerns around a potential escalation involving the US and Iran have weighed on risk appetite.
On Monday, US President Donald Trump posted on Truth Social, “PEACE THROUGH STRENGTH, TO PUT IT MILDLY!!!”
The statement followed Iran’s warning that it could target energy and water infrastructure in Gulf nations if threats to strike its electricity grid are carried out.
This backdrop has pressured digital assets, with Bitcoin closing below $67,360 on Sunday and triggering broader liquidations.
Solana followed the trend, slipping below $87 and continuing to trade cautiously.
Weak derivatives activity signals caution
Market participation in Solana derivatives has been declining, reinforcing the bearish tone.
Futures Open Interest on Binance fell to $871.40 million on Monday and has been trending lower since mid-January, signalling reduced trader engagement.
Funding rates have also turned negative at -0.0011%, indicating that short positions are paying longs and reflecting bearish positioning in the market.
Despite this, institutional demand has remained resilient.
Data showed $21.10 million in inflows into Solana products last week, marking six consecutive weeks of positive flows.
However, any reversal in these inflows could add further downside pressure.
On the daily chart, the RSI stands near 46, suggesting neutral momentum, while the MACD has slipped below the signal line and is approaching zero.
This indicates fading bullish strength after the price failed to break above the descending trendline near $91.44.
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