Solana Price Risks Deeper Losses as Downtrends Signal Weakness

Solana price has entered a high-risk zone after falling below a major support level held since February, exposing the token to further decline.

According to data from crypto.news, Solana ($ SOL) price was trading near $73 on June 4 after losing more than 12% over the past week. The token fell below the long-standing support zone of $76.6, a level that contained downward moves since February, while daily trading volumes accelerated as selling pressure intensified in the crypto market.

The decline came as derivatives traders unwound their heavily leveraged bullish positions. Earlier this week, more than $3.8 million in $ SOL Long positions were liquidated hours after a slight pullback triggered cascading margin calls in perpetual futures markets.

The forced sell-off coincided with a broader crypto market that wiped out about $1.8 billion in leveraged positions after Bitcoin fell below the $66,000 threshold.

At the same time, risk sentiment deteriorated in financial markets following renewed geopolitical tensions in the Middle East. Rising oil prices and growing concerns about prolonged regional instability have pushed investors toward safer assets, adding pressure to cryptocurrencies and other risk-sensitive markets.

Meanwhile, attention also focused on institutional activity after Strategy revealed a rare Bitcoin sell-off, ending a four-year accumulation streak. The move has roiled crypto markets and contributed to renewed concerns over liquidity conditions at a time when ETF flows have remained weak and central banks continue to maintain restrictive monetary policies.

Solana Charts Flash Multiple Bearish Signals

Technical indicators have deteriorated significantly following the latest outage. Solana has now fallen below its 50-day and 200-day simple moving averages, which sit near $83.4 and $85.9, respectively. The failure to regain these levels has left the bears firmly in control of the short-term trend.

The daily chart also shows a double top pattern that formed between March and May, with peaks near the $97 area and a neckline around $76.6. The recent break below this neckline confirms the structure and opens the door for a measured move towards the $50 region if sellers remain in control.

Momentum indicators continue to favor the decline. The MACD has moved deeper into negative territory while the histogram bars remain below the zero line, highlighting continued bearish momentum. Although the 14-day RSI has fallen into oversold territory near 25, buyers have yet to establish a convincing rebound.

Commenting on the setup, crypto analyst Daan Crypto Trades noted that many altcoins are showing similar structures to Solana after losing trading ranges over several months.

“Good setups would start to unfold when these local ranges resume which could then be played up to the high range or above.”

The analyst suggested that bulls must first reclaim the broken support zone before a sustainable recovery can develop.

According to crypto analyst CryptoBullet, the latest outage completed a wide-ranging structure that could expose $ SOL towards an evolution towards the region of 50-55 dollars. The analyst described the token as “absolutely cooked” and warned traders to prepare for more downside extension if support does not return.

The stable growth of the coin offers a longer-term counterbalance

Despite weak pricing, the network’s business remains resilient in one of Solana’s most important growth segments. Mastercard recently selected Solana as one of eight blockchain networks that will support regulated settlement of stablecoins in its payments infrastructure.

The network processed approximately $832.7 billion in stablecoin transfer volume during the first quarter of 2026, according to ecosystem data compiled from Artemis and Token Terminal. Stablecoins accounted for approximately 76% of all on-chain activity during this period.

February alone generated approximately $650 billion in stablecoin volume, the highest monthly figure recorded by any blockchain that month. Solana also handles approximately 35% of global on-chain stablecoin transfers by number of transactions, giving the network a significant position in one of the fastest growing crypto sectors.

For now, however, traders remain focused on technical damage and macro risks. A sustainable recovery would likely require $ SOL to reclaim the old support level at $76.6 and push back above the 50-day moving average near $83. Until then, the path of least resistance remains oriented downward.