SOL price consolidation, funding and holder dynamics

Solana (SOL) is exhibiting clear signs of short-term weakness, with upside momentum capped near the $95 level. After a recent decline of approximately 4.45% this week, SOL’s price has consolidated in the $85–95 range, reflecting sustained bearish pressure in the market.

Several key indicators highlight this consolidation phase and suggest potential downside risks ahead:

• Negative or Weak Funding Rates: Funding rates for SOL remain mostly negative or marginally positive, indicating that bearish sentiment is dominant among traders. For instance, after being negative, funding briefly turned positive at 0.0016%, only to revert back, underscoring uncertainty and lack of strong bullish conviction.

• Falling Open Interest: Declining open interest signals reduced participation or waning enthusiasm in derivative markets, often preceding further price weakness.

• Declining Network Revenues: Solana’s network revenue has been decreasing, pointing to reduced on-chain activity or diminished transaction volume, which can undermine confidence in the ecosystem’s growth prospects.

• Large Holders Reducing Exposure: Notably, around 50% of major SOL holders are exiting positions. This mass de-risking among significant holders often precedes increased selling pressure and can exacerbate price declines.

Together, these factors suggest continued downside pressure and potential liquidity fragility for SOL in the near term. The inability to sustain prices above $89–95, coupled with weakening market and on-chain metrics, paints a cautious picture for traders and investors.

In summary, Solana’s current price consolidation is characterized by capped upside, deteriorating funding dynamics, and reduced engagement from both market participants and ecosystem users, signaling a challenging environment ahead for the token’s short-term outlook.