Why Solana down today?

Solana (SOL) dropped 3% to $152.40, driven by a combination of bearish technical indicators and unease over a possible $1 billion token launch by meme coin platform Pump.fun. 

The price decline came alongside a 10% fall in trading volume to $3.1 billion, signaling reduced investor conviction. While unconfirmed, the potential airdrop and scale of the rumored token have sparked both hype and concern, especially given the platform’s past role in clogging Solana’s network. Some investors fear the launch could intensify network congestion and dilute value, possibly dragging SOL toward the $100 mark, especially as support levels look shaky.

Technical breakdown: Bearish signals dominate

SOL’s current trading level is below both its 50-day ($159.98) and 200-day ($178.43) simple moving averages—a sign of sustained downward pressure. The Relative Strength Index (RSI) stands at 38.41, approaching oversold conditions but not yet signaling a clear reversal. 

Meanwhile, the MACD is bearish, with the signal line above the MACD line and a red histogram confirming negative momentum. Price action is currently range-bound between $131 and $187, with Fibonacci levels at $142.44 (0.5) and $131.72 (0.618) acting as key support zones. A drop below $142.44 could trigger a slide toward $131.72 or even $116, marking a deeper retracement.

Macro pressures: Token unlocks, weak inflows, and technical fatigue

Beyond the Pump.fun speculation, analysts Kharitonov cites broader macro and market-specific factors behind SOL’s weakness. These include profit-taking post-Bitcoin rally, technical resistance at $158–$159, and low institutional inflows into the Solana ecosystem. 

Kharitonov says: 

"SOL may decline by another 5%. Then I expect a trend reversal and a steady growth of up to 20% later this month."

Additionally, an upcoming $2 billion token unlock looms over the market, threatening to increase circulating supply and depress prices further. Despite these headwinds, a sustained break above $178.43 could reignite bullish sentiment—but for now, Solana remains at risk of further downside as momentum favors the bears.

Recently we wrote that Solana price is trading near $156.70 as of June 4, posting modest gains but failing to build strong upside momentum after last week’s rejection from the $178 mark.