The cryptocurrency market staged a notable recovery with Bitcoin rebounding 1.4% from its low of $65,000 to around $67,400 in the last 24 hours, while the broader market moved 1.2% higher to edge back above $2.4 trillion. Among the top 10 cryptocurrencies by market capitalization, Ethereum and Solana led gains with Ethereum rising 2.8% to capture the $2,000 mark again, while Solana gained 2.3% to around $84. As reported by crypto.news, this recovery comes after Solana had previously fallen 13.5% from its weekly high of $92.88 to $80.37, confirming a multi-month bearish flag pattern that suggested potential continuation of the downtrend.
Data from SoSoValue shows that spot Solana exchange-traded funds recorded $4.24 million in outflows over the past week, breaking a six-week weekly inflow streak that drew in nearly $127 million from the investment products. As reported by crypto.news, while this recent cooling doesn't necessarily mean institutional investors will continue backing off from the asset, they have certainly spooked retail investors into a cautious state as they await clearer market signals. The institutional outflows have added to selling pressure and weakened overall investor sentiment, though the latest recovery suggests some stabilization in institutional sentiment.
According to crypto.news, over the past 24 hours, over $24 million in positions were liquidated from Solana alone, with the majority coming from long liquidations. These derivatives-driven liquidations have further accelerated the decline as positions were wiped out, creating additional selling pressure on the token. However, the latest recovery indicates that derivatives market pressure may be easing, with CoinGlass data showing around $366 million liquidated over the past day, with $243 million in long positions being forced to unwind, suggesting reduced leverage-driven selling pressure.
Technical indicators support the bearish outlook, with the Aroon Down standing at 92.86% while the Aroon Up was at 0%, indicating that bears are in total control of the trend. As reported by crypto.news, the Relative Strength Index shows the RSI at 44 slowly climbing back toward the neutral threshold, suggesting while immediate panic has subsided, overall momentum remains weak. If Solana price loses the $80 support level, the selloff could intensify quickly, with a break below this level likely to accelerate further losses. However, the latest recovery suggests the token may be finding some technical support after the recent bearish flag pattern formation.
