Solana Faces Bearish Market Trends Amid Record Futures Open Interest

According to Cointelegraph, Solana (SOL) is experiencing significant market challenges as its futures open interest reaches a record 71.8 million SOL, indicating a bearish sentiment. Over the past week, SOL has seen an 18% decline, marking one of its worst performances in 2025. This downturn positions SOL/USD for its lowest weekly close since late August, sparking speculation about a potential drop to the $120 level. CoinGlass data reveals that Solana's futures open interest, valued at $14.5 billion, has surged, with perpetual funding rates turning positive at 0.0043% from a previous -0.0065%. This shift suggests a potentially overleveraged market, where long positions may be vulnerable. The current market dynamics appear to favor bearish trends, as net taker volume shows a sell-heavy inclination, indicating increased activity from aggressive sellers. Additionally, a decline in spot CVD suggests that the sell-off is primarily driven by spot trading, further supporting the bearish outlook. Data from DefiLlama highlights a 16% decrease in the total value locked in Solana's DeFi protocols and an 11% drop in daily transactions over the past week, reflecting weakening network metrics. Cointelegraph notes that Solana's declining network activity and competition from other layer-1 blockchains present significant challenges for short-term price recovery. Technical analysis of SOL's price action between August 2 and September 25 reveals an inverted V-shaped pattern on the daily chart. Bears have capitalized on this rally, leading to a sharp correction and a potential further decline toward the pattern's neckline around the $155 demand zone, representing a 22% drop from current levels. A broader view shows a double-top formation on the weekly chart, suggesting a possible return to the neckline at $120, which would result in a 40% loss from current levels. However, there is a possibility of short-term relief for bulls, as the RSI indicates an oversold condition on shorter time frames. Cointelegraph reports that if support at $200 is breached, SOL's price may continue its downtrend toward the $150-$110 range. This article does not offer investment advice or recommendations. All investment and trading decisions involve risk, and readers are encouraged to conduct their own research before making any decisions.