Solana drops about 20% to $200 as futures open interest climbs

Solana plunged sharply this month, sliding as much as about 20 percent in seven days and trading roughly between $200 and $214 as investor nerves rose over weakening network activity and a crowded derivative market. The drop, driven by swift selling and long liquidations, has put nearterm support tests at $206 and $200 at the center of market attention and raised the prospect of either a quick technical rebound or a deeper correction depending on how those levels hold.

Technically, traders point to competing signals. Shorter time frames show oversold readings on the Relative Strength Index, and SOL has repeatedly touched rising channel support on four hour charts, a pattern some analysts say favors a bounce. On the other hand, the 50 day exponential moving average near $206 is an immediate support and a failure there could accelerate losses toward the 100 day EMA around $193, with more bearish scenarios projecting a return toward the $155 demand zone or even the weekly double top neckline near $120 if selling persists. Momentum indicators such as the MACD are tilting slightly bearish, and longer timeframe RSI readings have fallen from recent highs, reinforcing the mixed...