Solana Slumps Below $65 Amid Weak Demand and Bearish Sentiment

Solana's price has dropped below $65 as it continues to face selling pressure in the cryptocurrency market. The bearish performance is being fueled by weaker Bitcoin sentiment and fading risk appetite across digital assets.

Growing uncertainty in both institutional and retail participation is adding to downside pressure, raising concerns about a potential deeper correction below the $60 zone.

Institutional activity remains mixed despite ETF inflows, with data indicating that Solana-focused exchange-traded funds recorded $754,740 in inflows on Tuesday, following over $471,000 in outflows on Monday.

However, this short-term inflow is overshadowed by broader weakness, including a $6.52 million net weekly outflow last week, suggesting that institutional conviction remains fragile.

Retail participation continues to decline, with Solana's derivatives data pointing to a declining engagement in recent days. Data obtained from CoinGlass reveals that Solana's futures Open Interest (OI) is down by 3.7% in the last 24 hours and now reads $4.44 billion.