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Solana (SOL), the native token of the Solana blockchain, has emerged as the worst-performing cryptocurrency among the top 10 by market capitalization, following a sharp sell-off across the broader crypto market. The token dropped 11% in the last 24 hours and briefly tested the $68 support level before staging a partial recovery.

At the time of writing, SOL has reclaimed the $80 level, offering short-term relief to investors. However, analysts caution that underlying market data continues to reflect weakness, even as prices attempt to stabilize.

Broader market pressure drags SOL lower

SOL’s recent decline mirrors broader weakness in the cryptocurrency market. Bitcoin (BTC), which often sets the tone for altcoins, slid to a low of $60,000 on Friday, triggering risk-off sentiment across digital assets. Over the past five days, SOL has fallen nearly 23%, extending its losing streak to a fourth consecutive week.

Since mid-January, Solana’s price has dropped more than 43%, highlighting sustained selling pressure and reduced investor confidence during the current market downturn.

Derivatives data signals bearish sentiment

Solana’s derivatives metrics point to continued caution among traders. Futures Open Interest (OI) dropped to $5.37 billion, marking its lowest level since mid-April 2025. This is a sharp decline from the nearly $9 billion OI recorded in mid-January 2026, suggesting waning participation and reduced speculative interest.

Further reinforcing the bearish outlook, CoinGlass data shows SOL’s long-to-short ratio at 0.96, indicating that short positions currently outweigh long bets. Funding rate data has also turned negative, with the metric at -0.035%, meaning short sellers are paying long holders, a classic sign of bearish market sentiment.

Technical indicators remain under pressure

On the technical front, SOL’s 4-hour chart is among the weakest across major cryptocurrencies. The token faced a strong rejection at the $126.65 resistance level on January 28 and subsequently fell more than 21% within five days, slipping below the $100 psychological mark earlier this week.

Selling pressure intensified through Friday, driving prices as low as $67.50 before buyers stepped in. While SOL has rebounded above $81, downside risks remain.

The Relative Strength Index (RSI) on the 4-hour chart stands at 22, placing the asset deep in oversold territory and signaling strong bearish momentum. Meanwhile, the MACD indicator has remained in a bearish crossover since January 19, reinforcing the negative trend.

If selling pressure resumes, analysts warn that SOL could retest the next major psychological support at $60. On the upside, a continuation of the current rebound could push prices toward $89.30, with the $92 resistance zone acting as a critical hurdle for bulls.

While oversold conditions may support short-term relief rallies, market experts emphasize that Solana’s broader trend remains fragile. A sustained recovery would likely require stabilization in the wider crypto market, improved derivatives sentiment, and renewed investor participation.

Until then, SOL is expected to remain volatile, with traders closely watching key support and resistance levels amid ongoing market uncertainty.