Solana Price Forecast: Mixed market sentiment caps recovery

Solana price stabilizes at $79 on Friday after correcting by over 9% so far this week.
US-listed spot SOL ETFs recorded inflows of $11.60 million through Thursday, breaking two consecutive weeks of withdrawals.
Derivatives data indicates a cautious outlook, as funding rates turn negative alongside falling open interest.

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.

Diverging indicators restrain Solana’s recovery

Institutional demand for Solana returns this week. SoSoValue data shows that Solana spot Exchange Traded Funds (ETFs) recorded inflows of $11.60 million through Thursday, ending two consecutive weeks of withdrawals. If this trend continues and intensifies, SOL price could recover in the upcoming days.

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Total SOL spot net inflow weekly chart. Source: SoSoValue

In addition to positive flows, CryptoQuant’s summary data indicates a positive outlook, despite ongoing price weakness. SOL spot and futures market show large whale orders, cooling conditions, and buy dominance, hinting at a potential recovery.

However, derivatives markets signal caution among traders. CoinGlass data shows SOL’s funding rate flipped negative on Friday, reading -0.0014%, indicating that short positions are paying longs and hinting at a bearish sentiment.

In addition, Solana’s open interest fell to $4.96 billion on Friday, down steadily since mid-January and reaching levels not seen since mid-April 2025. This drop in OI reflects waning investor participation and projects a bearish outlook.

These divergences highlight growing uncertainty among traders and weaken bullish conviction, capping Solana’s recovery.

Solana’s funding rate chart. Source: Coinglass

Solana open interest chart. Source: Coinglass

Solana Price Forecast: SOL bears aiming for the $60 mark

Solana’s price extended its correction this week, falling nearly 9% after an 8.62% decline in the previous week. As of writing on Friday, Solana is trading at $79.04.

If Solana continues its downward spiral, it could extend the decline toward the February 6 low of $67.50. A close below this could extend further losses toward the next key psychological level at $60.

The Relative Strength Index (RSI) on the daily chart reads 26, an extreme oversold condition, indicating strong bearish momentum. The Moving Average Convergence Divergence (MACD) also showed a bearish crossover on January 19, which remains intact with rising red histogram bars below the neutral level, further supporting the negative outlook.