Solana bears dominate market as SunPump has potentially led to less demand for SOL

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Solana News

Cryptocurrencies,Technical Analysis

Solana (SOL) is down 2.5% on Thursday following bearish signals across its funding rate and total fees captured.

Solana funding rates turned negative as shorts dominated the market. The launch of Pump.fun competition, SunPump, has potentially led to less demand for SOL. Solana could bounce around the $136 support if long traders return to the market. Solana is down 2.5% on Thursday following bearish signals across its funding rate and total fees captured. SOL's weak performance could also be linked to the declining traction seen in its meme coin generation platform Pump.

SOL/USDT Daily chart A daily candlestick close below the $136 support level will invalidate this thesis. Such a move could send SOL toward the support at $115.97. The Relative Strength Index indicates increased bearish momentum after breaching its moving average around the midline. The Awesome Oscillator is indicating the prevalence of bearish momentum after posting a red bar below the zero line.

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