Solana extends losses as bearish pressure mounts
Solana [SOL] continues to slide, hitting a low of $61 before recovering slightly to $62 at press time. That marks a 4.6% drop on the daily charts and the lowest price for the altcoin since November 2023 — a 31-month low. The broader market pullback, combined with waning investor confidence, seems to be driving the decline.
“As investors across the board pull capital, speculators are stepping aside, waiting for better conditions before jumping back in,” market observers note. Institutional sentiment, in particular, has turned increasingly pessimistic. Many large players are closing their positions, likely due to mounting losses.
A clear sign: Solana spot ETFs, which had held positive net inflows over the past month, turned negative for two consecutive days. That suggests institutions are now aggressively dumping. In March, a similar selling trend pushed SOL from $91 to $81. If history repeats, further losses could be on the horizon as selling pressure mounts.
Losses fuel panic among treasuries and DATs
The shift in institutional sentiment appears tied to rising losses in Solana’s treasury. Take Forward Industries, for example — its SOL bet is now down over $1.3 billion. And it’s not alone. Other firms are also sitting on significant red ink.
Over the past 24 hours, Solana DATs (likely a reference to decentralized autonomous treasuries or similar entities) saw a 29% drop, with the total value of SOL held falling to $1.1 billion. As these bets turn sour, caution spreads, amplifying the sell-off.
Can SOL hold $60?
Solana’s downtrend momentum keeps strengthening under intense bearish pressure. The relative strength index (RSI) has dipped deeper into oversold territory, touching a low of 15. That typically signals that sellers are in control and buyers have been largely sidelined. Under such conditions, the trend often continues.
Currently, SOL is testing $60 as a critical support level. But downside strength looks elevated, raising the odds of a breach. If current conditions persist, a drop below $60 could happen, with $53 as the next likely support. The market seems to be holding its breath, waiting to see if buyers step in or if the selling will push prices even lower.
