The cryptocurrency market is going through a period of instability, and Solana (SOL) is at the forefront. Since February 1st, the drop of Bitcoin below $100,000 has caused a shockwave in altcoins. Solana, whose price evolves in strong correlation with BTC, has seen its price fall below the critical barrier of $200. The impact has not been limited to the price drop: investors have massively reduced their exposure, leading to a withdrawal of $367 million from the spot markets in three days. This massive liquidation has reversed market sentiment, as evidenced by a long/short ratio that has fallen to 0.93, confirming a dominance of sellers. While technical indicators signal a lasting bearish pressure, a break of the current supports could send Solana towards new lows, unless a sudden surge in demand manages to reverse the trend.

Solana below $200: the market capitulates

On February 1st, Bitcoin fell below the symbolic barrier of $100,000. This drop dragged the entire cryptocurrency market into a bearish dynamic. As often happens during such shocks, altcoins suffered a domino effect, and Solana (SOL) did not escape the storm. Its price quickly fell below $200, a key psychological threshold for investors.

The capital outflows in the SOL spot markets illustrate the growing distrust of traders. According to Coinglass, more than $367 million was withdrawn in a span of three days, a strong sign of divestment. Such a degradation of liquidity means that sellers dominate the trades, and demand for Solana is weakening. This retracement was accompanied by a collapse in the long/short ratio, which fell to 0.93. Furthermore, this figure indicates that short positions far exceed long ones, reinforcing the selling pressure on SOL.$SOL