Solana’s price remained above one hundred and twenty dollars after a near two percent decline earlier this week.
Market analysts warned the asset is trading within a descending wedge pattern on the daily chart.
The technical structure suggests a higher risk of further downside in the near term.
SOL reversed from the one hundred and thirty dollar level before sliding lower.
That move increased pressure toward the lower boundary of the wedge formation.
Institutional interest in Solana has softened but has not fully reversed.
Solana focused exchange traded funds posted their lowest weekly inflows in recent months.
Weekly ETF inflows fell to just over thirteen million dollars from more than sixty six million previously.
Despite the slowdown, ETFs recorded a two point nine three million dollar inflow on Monday.
The rebound followed a net zero flow session at the end of last week.
Analysts said the inflow suggests institutions are still selectively accumulating SOL.
Retail trader sentiment appears weaker compared with institutional positioning.
Derivatives data shows Solana futures open interest rose to seven point six eight billion dollars.
The increase indicates fresh capital entering the derivatives market.
However, the long to short ratio points to a growing bearish bias among traders.
Short positions now account for more than fifty two percent of active futures contracts.
Analysts said the data reflects sell side dominance despite higher overall participation.
From a technical perspective, Solana is consolidating between one hundred and twenty and one hundred and twenty five dollars.
The next key support sits near one hundred and fifteen dollars based on trendline analysis.
A breakdown below that level could open a move toward one hundred and seven dollars.
Further weakness could expose the April low near ninety five dollars.
Momentum indicators continue to send mixed signals to traders.
The relative strength index remains below fifty, signalling ongoing bearish pressure.
At the same time, the MACD indicator is attempting to recover toward neutral territory.
Analysts said a sustained move above one hundred and twenty five dollars could ease downside risks.
Until then, traders remain cautious amid broader crypto market uncertainty.
At the time of reporting, Solana price was $123.77.