Solana is experiencing downward pressure as it failed to sustain above $125; the asset has slipped back towards the key $112 level. This reflects a weakening technical structure, making the current levels decisive in the short-term.
Solana entered a corrective phase after multiple rejections near $125.
SOL remains below its 50-, 100-, and 200-day Exponential Moving Averages (EMAs), indicating negative market sentiment. At the press time, SOL is down 6.28% on Friday.
Immediate resistance for SOL is at $116, which previously limited downside moves on Sunday.
The Moving Average Convergence Divergence (MACD) is below the signal line, while the negative histogram shows decreasing downward strength through its contracting pattern.
The Relative Strength Index (RSI) is at 34.59, which reversed from the midline. This indicates a weak tone as it approaches the oversold level at 30.
A close below $110 for SOL could open the door for a deeper correction to the psychological level at $100, followed by $95, the April 7 low.
Solana faces multiple resistances on its upward movement, which include the 50-day EMA at $133, the 100-day EMA at $144, and the $145-$148 supply zone.
According to Solana Compass, the network has lost approximately 68% of its validators since March 2023. Falling from around 2,560 active validators at its peak to roughly 795 today.
Validators must now commit at least $49,000 worth of $SOL for their first year of operations, and also have hardware and server expenses.
Daily voting fees, which can reach up to 1.1 $SOL, add further financial strain.
The network’s Nakamoto Coefficient has from 31 to 20, indicating a concentration of power among fewer validators.
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Solana is losing retail strength as capital outflows from its derivatives market reinforce risk-averse sentiment. CoinGlass data shows that SOL futures Open Interest fell 3.38% over the last 24 hours to $3.26 billion, indicating a significant leverage reduction.
Confirming the bearish bias, long liquidations of $70.30 million far exceed short liquidations of $0.77 million over the last 24 hours, indicating that leveraged bullish positions were aggressively wiped out.
Additionally, the funding rate has flipped to a negative 0.0094%, reflecting a short position among new investors.