Solana’s price fell sharply, dropping 4.5% to approximately $88 and breaching the $90 support level. This decline was driven by increased bearish sentiment in the derivatives market, where significant long positions were liquidated. While spot ETFs have provided some market support with continued inflows, analysts warn of a potential major downturn based on a recurring bearish chart pattern.
Following a rejection at $93, Solana (SOL) experienced strong downward pressure and failed to hold the $90 support level. The altcoin dropped to a low of $88 and was trading near $88.2 at the time of reporting.
An analyst projected the likelihood of a major crash, citing a previous pattern. The analyst stated that if the bearish flag pattern fully forms, SOL could drop from $40 to $45.
The decline coincided with bearish activity in the derivatives market. CoinGlass data showed futures netflow turning negative, plunging 547% to negative $103 million as outflows outpaced inflows.
At the same time, the altcoin’s Open Interest fell 2% to $5 billion, while liquidation surpassed $8 million. Approximately $6 million of the liquidations were from long positions.
In contrast, Solana spot ETFs have avoided net outflows and recorded $4.5 million in net inflows according to Sosovalue data. This has helped reduce potential selling pressure from the spot market, which also saw negative netflow.
Spot Netflow fell to negative $35.5 million, indicating increased spot accumulation. Some market participants may be viewing the price dip as a buying opportunity.
