Solana (SOL) is testing a key support level near $140 as selling pressure mounts. The price gained 2% on Friday, avoiding a drop below $140, but it is set to close its second straight bearish week after falling nearly 6% on Thursday. Traders and technical indicators suggest a deeper correction may be underway.
Open interest in Solana derivatives has dropped 4.6% in the past 24 hours to $6.46 billion, signaling reduced trader interest. Long liquidations reached $47 million recently, while short liquidations stalled at $3.5 million.
This shift has increased bearish positions, with the long-to-short ratio falling below 1, indicating more traders betting on price declines. The funding rate also turned negative, meaning bears are paying bulls to keep prices aligned.
Solana’s price has fallen over 20% from its 30-day high of $187.71 on May 23. It failed to break resistance near $180 and has followed a downward trendline since January.
A breakdown from a triangle pattern on May 28 marked a bearish reversal, confirmed by a 5% drop on Thursday and a close below the Supertrend indicator baseline.
Technical indicators reinforce the bearish outlook. The Relative Strength Index (RSI) stands at 37, near oversold levels, suggesting more downside risk.
The MACD indicator is below its centerline with growing negative momentum. If Solana falls below $140, it could extend its correction toward $105, the lowest close this year.
