Solana is facing renewed selling pressure after dropping more than 7% earlier this week, as geopolitical tensions and macro uncertainty continue to weigh on risk assets. Technical signals now suggest the token could be vulnerable to further downside.<\/p>\n\n\n\n
With weakening on-chain fundamentals and fading derivatives activity, traders are questioning whether Solana\u2019s bearish flag pattern could trigger another leg lower.<\/p>\n\n\n\n
Solana fell from $88.05 on Sunday to an intraday low of $81.86 on March 2, marking a sharp daily decline. Although the token later attempted to reclaim the $90 resistance level during a brief market-wide recovery, the rally stalled just below that threshold.<\/p>\n\n\n\n
Zooming out, Solana is down more than 30% over the past month and roughly 44% from its yearly highs. The broader trend remains firmly bearish.<\/p>\n\n\n\n
The decline comes as investors shift away from risk assets amid escalating U.S.-Iran tensions, which have triggered volatility across global markets. Rising oil prices and inflation concerns are fueling speculation that the Federal Reserve could maintain a hawkish stance for longer, a scenario that typically pressures high-beta assets like Solana.<\/p>\n\n\n\n
Beyond macro factors, Solana\u2019s on-chain metrics are also showing signs of weakness.<\/p>\n\n\n\n
According to DeFiLlama data, weekly network revenue has fallen more than 30% from its mid-January levels. Total value locked (TVL) on the network has also dropped significantly, declining from over $9 billion on Jan. 17 to around $6.64 billion at the time of writing.<\/p>\n\n\n\n
These declines suggest cooling activity across the ecosystem. Some analysts believe the memecoin-driven surge that previously boosted Solana\u2019s growth may be losing momentum.<\/p>\n\n\n\n
When network revenue and TVL contract simultaneously, it often signals reduced demand and weaker user engagement, both of which can weigh on price performance.<\/p>\n\n\n\n
Derivatives data further reinforces the cautious outlook.<\/p>\n\n\n\n
CoinGlass figures show that Solana futures open interest has dropped nearly 45%, falling to $4.93 billion from January\u2019s high of $8.88 billion. This sharp reduction indicates traders are unwinding leveraged positions and waiting for clearer signals.<\/p>\n\n\n\n
Falling open interest during a downtrend often reflects declining speculative appetite and uncertainty about near-term direction.<\/p>\n\n\n\n
On the daily chart, Solana has formed a bearish flag pattern. This structure typically appears after a strong downward move, followed by a brief consolidation phase. Historically, bearish flags often resolve with another breakout to the downside.<\/p>\n\n\n\n
Additional indicators support the bearish case. The Supertrend indicator has turned red, signaling continued downward momentum. Meanwhile, the Aroon indicator shows Aroon Down at 50%, highlighting sustained selling pressure.<\/p>\n\n\n\n
If the bearish momentum persists, Solana could revisit the February 6 low near $70. A break below that level may intensify downside pressure.<\/p>\n\n\n\n
Despite the negative signals, the bearish outlook is not guaranteed.<\/p>\n\n\n\n
A decisive break above the $90 resistance level would challenge the current pattern. Solana has struggled to close above this area multiple times in recent weeks. If buyers manage to reclaim and hold above $90, the next target could be the psychological $100 level.<\/p>\n\n\n\n
Improved macro conditions, easing geopolitical tensions, or renewed ecosystem activity could also shift sentiment.<\/p>\n\n\n\n
For now, however, technical and fundamental signals suggest Solana remains under pressure.<\/p>\n","protected":false},"excerpt":{"rendered":"
Solana is facing renewed selling pressure after dropping more than 7% earlier this week, as geopolitical tensions and macro uncertainty continue to weigh on risk assets. Technical signals now suggest the token could be vulnerable to further downside. With weakening on-chain fundamentals and fading derivatives activity, traders are questioning whether Solana\u2019s bearish flag pattern could…<\/p>\n","protected":false},"author":3,"featured_media":14425,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63,70],"tags":[65,80,89],"class_list":["post-14408","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-finance","tag-crypto","tag-security","tag-solana"],"yoast_head":"\n