Solana Price Forecast: Bearish grip tightens on SOL amid broader market sell-off

• Solana extends losses below $80 on Friday, continuing a corrective phase over the last six weeks, down 35%.
• A broader market correction, with over $1 billion in total liquidations over the last 24 hours, weighs on SOL.
• Derivatives data points to a sell-side dominance with heavy outflows and a declining taker buy-to-sell ratio.

Solana (SOL) is down 4% on Friday, extending losses below $80 and marking a nearly 10% decline so far this week. The broader cryptocurrency market is seeing heavy selling, with Bitcoin (BTC) diving below $70,000 and wiping out more than $1 billion in the derivatives market. This adds to the sell-side dominance in SOL futures amid persistent outflows. The technical outlook for SOL is bearish as downside momentum remains firm despite the asset entering oversold territory.

Crypto market liquidations cross $1 billion in 24 hours

Bitcoin’s slip below $70,000 on Friday mirrors Nvidia's decline, as CEO Jensen Huang resigns amid public and board scrutiny over personal relationships. CoinGlass data shows that the pullback wiped out $1.41 billion over the last 24 hours, with $1.26 billion in longs, reflecting a clear selling bias. 

In the case of Solana, futures have seen $191 million in outflows so far on Friday, while spot market outflows have reached $8.80 million. In addition, the SOL taker buy-to-sell ratio around 0.90 has remained below 1 since late July, indicating a firm bearish bias among traders.

Taken together, the risk-off sentiment in the derivatives market strengthens amid uncertain broader market and macroeconomic conditions.

Technical outlook: Will SOL crash to $70?

Solana hovers around $78.33 on Friday, continuing its steady decline after peaking above $120 in early October. The 50-day Exponential Moving Average (EMA) at $97.55 has fallen below the 200-day EMA at $98.62, forming a Death Cross pattern that indicates a bearish trend reversal.

The pair has also slipped beneath a previously supporting ascending trendline, now a broken barrier near $91.20, reinforcing the notion of a completed upswing. The immediate support for SOL stands at the $77.60 horizontal level, where a confirmed breakout could extend downside risk to $67.50.

Momentum conditions remain heavy, with the Relative Strength Index (RSI) pressed into oversold territory around 19 and the Moving Average Convergence Divergence (MACD) staying below zero, with the signal line at -0.96, hinting that selling pressure is gaining traction.

On the topside, initial resistance emerges at $87.46, followed by the horizontal cap at $95.82, before the more congested band of the 50-day and 200-day EMAs at $97.55 and $98.62 steps in as trend-defining supply.

(The technical analysis of this story was written with the help of an AI tool. Know more.)