Core Viewpoint - Solana (SOL) is experiencing significant price declines, with a 15% drop over the past week, and may face further losses, potentially testing the $200 mark in the near future [1][6]. Market Participation - The decline in SOL's price is accompanied by a 17% decrease in futures market open interest, which currently stands at $14 billion since September 19, indicating reduced market participation [2]. - Open interest, which reflects the total number of unsettled futures or options contracts, is falling alongside SOL's price, suggesting that traders are closing positions rather than opening new ones, reflecting waning confidence in SOL [3]. Sentiment Analysis - The Net Unrealized Profit/Loss (NUPL) for SOL's short-term holders is at 0.039, indicating that these holders are oscillating between the Hope and Fear zones, which reflects weak sentiment [4]. - Short-term holders are nearly at break-even, and historically, when NUPL is in this range, there is increased sensitivity among these holders, making them more likely to capitulate at signs of weakness, thus increasing the risk of further declines for SOL [5]. Price Projections - If current trends continue and buyer demand does not recover, SOL could drop below the critical support level of $200, potentially reaching $195.55 [6]. - Conversely, if buyer interest renews, it could stabilize the price and prevent further losses, with a potential rebound to $219.29 [7].