Sol at key levels: Breakout or rejection on the horizon?

Solana (SOL) rose about 2% on Monday, recovering slightly after a roughly 5% decline over the past four days. However, the overall market sentiment remains weak. Institutional interest declined on Friday, with approximately $7.8 million withdrawn from Solana exchange-traded funds. Meanwhile, derivatives data indicate a bearish bias, with funding rates being negative.
In derivatives trading, approximately $8 million positions were liquidated over the last day, mostly long positions worth around $23 million. This suggests that optimistic traders were forced out. Negative funding rates $19 around -0.0141%( show that short positions are currently dominant, with traders leaning toward further price declines.
Technically, Sol remains in a clear downtrend in the short term. Prices are forming lower highs and lower lows since peaking near $95, and the downtrend line still acts as resistance.
The rebound from the demand zone )to $80 appears weak. Buyers entered, but the lack of strong momentum indicates this may be just a temporary bounce rather than a true trend reversal.
Key levels to watch include resistance at $85.9, $88.5, and $91.2, which align with supply zones and moving averages. Support is around $79 to $79.4—this area is very important. If the price drops below that, the next potential target is around $75.
Indicators still lean bearish. Sol is trading below major moving averages, indicating seller dominance. The MACD is attempting to turn bullish, but momentum remains weak and has not yet expanded.
In short, the bias remains neutral to bearish. This appears to be a short-term rebound within a downtrend, not a confirmed reversal.
If Sol maintains the $80 level and breaks above $86, it could head toward $80 $91. But the more likely scenario is rejection near $88 $88, followed by a decline toward $79, possibly even $75.
The overall trend has not changed. Until Sol breaks above $85 and makes a higher high, upward movements are likely to face resistance. The market is still in a zone where ripbacks are sold rather than signals of reaching the bottom.
$91
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