Solana's Price Decline Continues Amid Weakening Institutional Demand

Solana (SOL) remains under pressure as its price continues to fall. After losing nearly 20% in the previous week, SOL is trading below $66 on Monday. This decline has raised concerns among investors about further downside risks for the cryptocurrency.

One of the key factors contributing to this downward trend is weakening institutional demand. Spot Solana Exchange Traded Funds (ETFs) recorded a net outflow of over $6.5 million last week, breaking a four-week streak of positive flows. This trend may persist and intensify in the coming days, leading to further correction in SOL's price.

Derivatives data also suggests a bearish outlook for Solana. The funding rate has turned negative, with shorts paying longs, which is often a precursor to sharp corrections. Additionally, Coinglass's long-to-short ratio for SOL remains below one, indicating bearish sentiment among traders.