Solana Faces Bearish Pressure as Open Interest Plummets

Solana's futures open interest has dropped by 30% in May, signaling a significant exodus of bullish traders. The decline in leverage positions suggests waning confidence among speculators, as the altcoin market faces a broad slump. With SOL trading near $80, the lack of buying support raises the risk of a further breakdown to $68, a key support level not seen since late 2023.

Technical indicators paint a grim picture: the price is hovering below major moving averages, and volume is declining, confirming weak momentum. The funding rate has turned negative, indicating that short sellers are paying to maintain positions, which could exacerbate downward pressure.

Unless broader market sentiment improves or Solana sees a catalyst to reignite demand, the path of least resistance remains lower. Traders should watch for a close below $78, which could trigger accelerated selling toward $68.

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