Solana Price Forecast: SOL Sell-Off Intensifies as BTC Drops to $60,000

Solana’s price dropped below $70 on Friday, marking a continuation of its recent bearish trend. The decline was accelerated by broader weakness in the cryptocurrency market, with Bitcoin hitting a low of $60,000 on the same day. The move pushed Solana deeper into oversold territory, with its Relative Strength Index (RSI) reading at 19.

Derivatives data for Solana shows a deepening bearish bias. Open Interest (OI) for Solana futures has dropped to $5 billion, the lowest level since mid-April 2025. The long-to-short ratio on CoinGlass stands at 0.96, indicating more capital is allocated to short positions.

Meanwhile, the funding rate for Solana turned negative on Friday, a signal that shorts are paying longs to hold their positions. This further reinforces bearish sentiment among traders.

Why Did This Sell-Off Occur?

The broader cryptocurrency market has been under pressure, with Bitcoin leading the decline. The drop below $60,000 in Bitcoin triggered a cascade of liquidations, with total long liquidations reaching nearly $509 million in the last 24 hours. This systemic weakness spilled over to altcoins like Solana, amplifying the sell-off.

Technical indicators also contributed to the downward momentum. Solana’s price was rejected at the weekly resistance level of $126.65 on January 28 and fell below the key $100 psychological level soon after. The move triggered a deeper correction, with the asset losing more than 21% in a short span.

How Are Analysts Interpreting Market Conditions?

Despite the bearish price action, network fundamentals remain robust. On-chain data shows Solana processing over 2.34 billion transactions in January 2026, a 33% increase compared to the previous month. This suggests that the network continues to attract user activity, even as the token price declines.

Spot Solana ETFs also recorded inflows of $1.24 million on Tuesday, adding to the $5.58 million inflow on Monday. These inflows indicate sustained institutional interest in Solana despite the price drop.

However, the derivatives market shows a different story. Position closures over the past 24 hours amounted to $22.31 million in long liquidations, nearly five times the short liquidations. This imbalance suggests strong bearish sentiment among leveraged traders.

What Price Levels Are Key for the Near Term?

Solana’s short-term price trajectory will likely depend on its ability to hold key support levels. If the price continues to slide, it could test the $60 level next, a major psychological target for bears.

A rebound above $95 may provide a temporary reprieve, with the 50-day EMA at $127 acting as a potential target for bulls. However, the MACD and RSI remain in bearish territory, indicating that further downside is still possible unless buyers step in decisively.

For now, Solana’s technical outlook remains bearish. The token trades below all major EMAs, and the on-chain indicators suggest that the path of least resistance is downward. Traders and investors are closely watching whether the market can stabilize at current levels or if the sell-off will extend further.