SOL has been under significant pressure during this round of cryptocurrency market downturn, briefly falling below the $70 support level to a low of $66 before recovering slightly. According to the data in this article, SOL is currently trading at $70.4, a daily decline of 7.3% and a cumulative weekly drop of 13%. This is the lowest level the asset has reached since December 2023.

Long liquidation dominates

After prices fell, liquidation pressure in the derivatives market increased rapidly. Data shows that the total liquidation amount related to SOL rose to $83 million, of which long positions accounted for approximately $78.25 million, indicating that leveraged long positions faced the main pressure during the decline.

CoinGlass data shows that sellers continued to dominate the futures market over the past week. In the past 24 hours, the futures market saw an outflow of approximately $3.09 billion, compared to an inflow of approximately $2.8 billion, resulting in a net outflow of $281 million. Looking at a longer timeframe, the cumulative outflow from the futures market reached $10.82 billion, reflecting continued capital withdrawal from high-risk positions.

Selling pressure also emerged in the spot market.

The spot market sentiment was also weak. The article noted that in the past four hours, spot inflows reached $115.9 million, while outflows were $92 million, resulting in a net inflow of $22.9 million to exchanges, an increase of 309%. On a daily chart, net inflows also rose to $6.88 million, an increase of 1165%.

This type of fund flow typically indicates that more tokens are being transferred to trading platforms, increasing market selling pressure. The simultaneous weakening of both spot and futures markets further intensifies short-term price pressure.

Market focus on the $60 level

From a technical perspective, the SOL has fallen below both short-term and long-term moving averages. The article also mentions that its Relative Strength Index (RSI) has dropped to 22, indicating a clear oversold condition and reaching a three-year low. This signal typically suggests that sellers are in control in the short term.

If the current sentiment continues, the market's next support level will shift down to around $60. If buying pressure strengthens and prices regain $80, it would help alleviate the current downward pressure.