Market Sentiment Turns Bearish as SOL Breaches Key Support
Solana (SOL) fell below the critical $150 support level on June 5, 2025, following large-scale exchange inflows and whale outflows. The sell-off reflects shifting investor sentiment despite robust network activity, raising questions about short-term recovery prospects.
Key Takeaways
- Price Drop: SOL declined 5.2% from $157.98 to $149.79, failing to hold the $150 support level.
- Whale Activity: 3 million SOL tokens flooded exchanges over three days, signaling reduced confidence.
- Network Strength: Solana maintains 7 million daily active wallets and 100M+ daily transactions.
Detailed Price Action and Technical Indicators
Exchange Inflows Accelerate Selling Pressure
High-volume trades dominated the early afternoon session, with 182K SOL traded at 13:56 UTC alone. Analysts linked the downturn to:
- 3M SOL transferred to exchanges ($468M+ in outflows).
- Failed recoveries at $153 resistance.
- Descending channel formation (lower highs/lows).
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Technical Analysis Snapshot
| Metric | Value | Interpretation |
|----------------------|-------------------|-------------------------|
| Trading Range | $8.19 ($157.98–$149.79) | High volatility |
| Volume Spikes | 21K–182K | Aggressive selling |
| Buy Interest Zone | $149.50–$150.60 | Weak demand observed |
Long-Term Fundamentals vs. Short-Term Weakness
While Solana’s usage metrics (e.g., 100M+ daily transactions) suggest enduring strength, price action remains decoupled from protocol performance. Reclaiming $153 resistance and stabilizing above $150 are now critical to avoid further declines.
FAQ: Addressing Reader Queries
Q: Why did SOL drop below $150?
A: Whale outflows (3M SOL to exchanges) and high-volume selling overwhelmed buy support.
Q: Is Solana’s network still growing?
A: Yes—7M daily wallets and 100M+ transactions confirm strong adoption.
Q: What’s the key resistance level?
A: $153; holding above $150 is vital for bullish momentum.
👉 Explore Solana’s ecosystem updates
Disclaimer: This analysis adheres to rigorous editorial standards. For transparency, review our AI policy.
Authored by CoinDesk Analytics with human oversight. Data sources include CoinDesk Research and on-chain metrics.
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