Solana price dropped about 5% on Tuesday amid a broader market pullback following U.S. spot Bitcoin ETFs, which saw $1.42 billion in net outflows in the week ending May 29. This marked the eleventh straight day of redemptions. As a high-beta asset, Solana (SOL) fell more than the overall market, reaching around $77, while the total crypto market cap fell 3.44% in 24 hours.
Bitcoin ETF Outflows and an 82% DEX Volume Drop Pull SOL Lower
The ETF outflows indicate that institutions are reducing risk amid higher oil prices and global uncertainty. This has a direct impact on altcoins. If the eleven-day streak of outflows ends, it could be the first sign that institutional demand is coming back.
Meanwhile, on-chain data shows that Solana’s foundation was already weakening. Weekly DEX volume on Solana dropped by about 82% in the second half of May, from $104.3 billion to $18.8 billion, as the meme coin craze slowed.
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Solana’s protocol economics are also under pressure. Over the past year, fees totaled $317.6 million, and revenue was $39.1 million, putting Solana third among Layer 1 blockchains in both categories. This is a 5.2% share of fees but only 0.7% of revenue, which is much lower than Tron’s $3.1 billion.
Daily active users are holding up better, with 2.1 million users and a 14.4% share, ranking third again. Solana’s token is still #7 by market cap at $44.58 billion, down 2.98%.
Solana Price Breaks $80 Support, Putting $70 in Focus as Signals Turn
This is a downward trend, not just a temporary dip. Solana price has dropped in steps from about $150 to $125, then to $100, then to $80, making lower highs each time. The $80 support level, which held for months, is now breaking. When a support level fails after several tests, it often turns into resistance.
All moving averages tracked by TradingView, from the 10-period to the 200-period, also show a Sell signal. Only the Ichimoku baseline is neutral. The Solana price is below the 9-period simple moving average at 82.09, indicating a downward trend. This suggests the trend is likely to continue rather than reverse.
Furthermore, the relative strength index (RSI) is currently at 29.38, indicating that SOL is oversold. However, a trend like this suggests capitulation rather than a buying opportunity. There is little support from traders: open interest has dropped to $5.48 billion from earlier highs, and funding is flat at -0.0025%, with no large group of short sellers to trigger a squeeze.
Chartist CryptoBullet, who flagged the setup as a “big breakdown,” projects a slide toward the $50 area by July.
In the short term, the $75 to $78 range is a key support area, and Tuesday’s low of $75.58 already pierced it. If Solana price falls further, $70 is the next likely target, with little support between $65 and $68 below that.
For Solana to have a real chance at moving higher, it needs to recover $80 and then break above $85. Without that, any bounce into the $80 to $83 range will likely be rejected, and the price could continue down toward $70.
Looking at the numbers, Solana’s price is down 9.23% this week, 8.37% this month, 46.63% over six months, 38.05% year-to-date, and 51.03% over the past year. However, over the long term, it is still up 149.62% over five years and 2,610% all time.
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