Solana Price Forecast: SOL faces pressure on its long-term trendline as warning signals surface

• $90 remains above Solana’s price on Friday. After losing over 6% the previous day, SOL is testing a long-term support trendline.
• Roughly $40 million in liquidations on Thursday, alongside falling SOL futures Open Interest, points to sellers retaining control.
• $1.18 million left SOL ETFs on Thursday as selling pressure persisted, following last week’s record weekly outflow of $71.47 million.

$90.00 remains out of reach for Solana (SOL) on Friday as it trades at a two-month low. The token lost over 6% the previous day, when liquidations across the broader cryptocurrency market exceeded $1 billion. Falling Open Interest in derivatives markets signals weaker trader interest in Solana. Institutional investors also pulled $1.18 million from SOL-focused exchange-traded funds (ETFs), adding to last week’s record outflow of $71.47 million. 

A break beneath horizontal support at $87.21 could, on technical grounds, leave Solana vulnerable to further losses towards the $70.00 round-number level.

$1.18 million ETF outflow underscores weaker investor appetite for Solana

Macroeconomic uncertainty is weighing on sentiment across the cryptocurrency market, reducing both institutional and retail investors’ appetite for Solana risk. A Democratic sweep of the US midterms, against the backdrop of the ongoing AI debt crises, is fuelling risk aversion. 

After three consecutive days without flows, SOL-focused ETFs registered withdrawals of $1.18 million on Thursday. The pause suggests institutional investors took a breather following last week’s $71.47 million outflow, the largest on record and the fourth consecutive week of withdrawals.

Among retail traders, positions have been unwound so far this week, according to CoinGlass data. SOL futures Open Interest (OI) has fallen to 59.45 million SOL from Monday’s 62.71 million. Thursday’s liquidations totalled $42.87 million, of which $39.37 million came from long positions. This shows that buy-side positions accounted for most liquidations as sellers reasserted control.

With ETF withdrawals and falling OI pointing to waning interest in Solana, downside risks could intensify further.

$70 downside risk: Solana technical outlook

At $89.65 at the time of writing on Friday, Solana is extending its decline into a sixth consecutive week. Trading below the 200-day Exponential Moving Average (EMA) of $99.62 keeps SOL’s near-term outlook bearish. Meanwhile, the falling 50-day EMA at $101.92 risks moving beneath the 200-day EMA, potentially signalling a Death Cross.

Around $89.83, SOL is testing a long-term ascending support trendline drawn through the lows of June 6 and 25. Should a break below that line be confirmed, horizontal support at $87.21 could come under threat. That would open the way for a sharper correction towards the $70.58 floor, which was last tested on August 1.

Daily momentum indicators also favour the downside. The Relative Strength Index (RSI), at 29, is hovering near oversold territory. The Moving Average Convergence Divergence (MACD) is falling below its signal line in negative territory.

If the support trendline triggers a rebound, the first upside test could be the 200-day EMA at $99.62. Beyond that lies the 50-day EMA at $101.92.

(The technical analysis of this story was written with the help of an AI tool. Know more.)