color: var(color-red-500)

by

Will Solana price drop below $80 as bearish crossover forms?

Solana’s price has fallen back to around $84 after briefly trying to recover to $86. With negative momentum building up weekly and more potential sellers entering the market, traders are watching closely to see if SOL will drop below the important $80 support level.

Summary

  • Solana price remained trapped between $82 and $86 as bearish weekly momentum and declining futures open interest kept traders focused on the $80 support zone.
  • SOL futures open interest dropped from $6.77 billion to roughly $5.45 billion after repeated rejections below the $90 resistance area.
  • Analysts warned that a breakdown below the ascending channel and the psychological $80 level could trigger a deeper correction toward lower liquidity zones.

At the time of this report, Solana (SOL) was trading around $84.30, a decrease of about 1.3% for Tuesday. It faced resistance around $87, preventing it from moving higher. For the past week, the price has been stuck between $82 and $86 as buyers attempt to regain upward momentum after a rally to $98 on May 12th.

Recent price drops have wiped out most of the gains Solana (SOL) made earlier this month, bringing its value back down to January levels. This downturn also reflects a broader negative trend in the altcoin market, triggered by Bitcoin’s failure to maintain key support levels, which has lessened the appetite for riskier Layer-1 tokens like SOL.

Despite the recent price drop, large investors have continued to buy Solana (SOL). According to data from SoSoValue, products linked to SOL have seen over $110 million in new investments in the last three weeks, making it one of the most consistently purchased major altcoins.

Recent interest in Solana is likely due to growing speculation about the potential approval of spot Solana ETFs in the U.S. News reports, including one from crypto.news, highlighted that Morgan Stanley recently indicated investment in Solana, and several financial firms are actively seeking approval to offer regulated Solana investment products.

Solana futures traders are acting differently. Data from CoinGlass shows that the total value of open futures contracts dropped significantly from $6.77 billion on May 12th to around $5.45 billion this week. This indicates that traders using leverage are decreasing their positions while the price stabilizes.

Solana’s price has been falling faster since it couldn’t break past the $90 level earlier this month. Traders who bet on a price increase using borrowed funds have been closing their positions or selling off some of their holdings as the technical indicators suggest the price is losing steam.

Recently, funding rates on many exchanges have stabilized as prices have moved sideways. With fewer traders taking speculative positions, a large, sudden price increase (a ‘short squeeze’) is less likely right now. This means current price levels are primarily being supported by actual buying and selling, rather than speculative bets.

Beyond the crypto world, the overall economic climate has been tough on investments considered risky. Recent data showing higher-than-expected inflation in the U.S. led investors to believe the Federal Reserve will likely hold off on lowering interest rates soon, which caused bond yields to increase over the past week.

Rising oil prices and worries about shipping routes due to global events are making investors more hesitant. Crypto traders are being careful, as people move their money into safer investments while keeping a close eye on inflation and what central banks are doing.

Bitcoin’s struggle to break through important price barriers has negatively impacted other cryptocurrencies, known as altcoins. Solana, which usually experiences bigger price swings during turbulent times, hasn’t performed as well as many larger, more established digital currencies in the recent market dip.

Even though Solana’s price hasn’t performed strongly recently, its underlying network activity is growing. Over the last month, the value of real-world assets built on Solana increased by over 20%, reaching a total of $2.5 billion, according to data tracking the network.

Even though prices have fallen recently, activity involving stablecoins on the network has stayed strong. The Solana Foundation is still working with companies like AirAsia MOVE and Google Cloud to improve stablecoin technology and payment options, which is keeping interest from institutions high.

Long-term investors are also keeping a close eye on how actively the Solana network is being developed. Excitement about upcoming improvements – like making the network faster and more efficient, and enhancing its security – has helped keep investor confidence from dropping as much as it has in past market downturns.

Can Solana price defend the $80 support level?

Looking at the weekly chart, Solana (SOL) is still trading below a key resistance level around $122.34, as indicated by the Supertrend. This indicator has been showing a downward trend since the price fell from its peak in late 2025. A significant price increase isn’t expected until SOL reaches approximately $152.

Technical indicators suggest a recovery isn’t fully established yet. While the MACD recently showed a small positive shift around the 3.00 level, it only indicates that the recent price decline is losing steam, not that prices are definitely going up.

Although the price has recently stabilized above its support level, the MACD line is still below the signal line, currently at -14.68 compared to -17.69. This means buyers haven’t yet signaled a strong upward trend on the larger timeframe, and the overall technical picture still favors sellers.

As I’ve been watching Solana (SOL) on the daily chart, it’s become clear that the price is struggling to get back above its 100-day moving average. Over the past week, every time the price has tried to bounce back, it’s consistently hit a wall around $86 to $87. This tells me that level is a critical resistance point that traders are definitely keeping a close eye on.

Solana’s price is currently stabilizing below a key price level, and remains within a defined trading range. Historically, similar periods of price squeezing under falling averages have been followed by significant price swings in Solana.

Trader Umair Orakzai cautioned that the market could fall if buyers don’t push prices above a key resistance level. He explained on X that the current stability, happening between a support level and the 100-day Simple Moving Average resistance, isn’t a positive sign.

Orakzai believes the price could fall below $80 quicker than many expect. He suggests that a definitive drop from its current pattern could lead to a more significant decrease, potentially reaching the upper $70s where there’s less trading activity.

The stock is currently trading in a precarious position. While it’s holding above a key support level, it’s facing resistance from its 100-day moving average, which isn’t a positive sign. There’s a real risk the price could quickly fall below $80. If it breaks down from its current trading range, a significant price correction is likely, potentially reaching the next support level.

— Umair Orakzai (@Umairorkz) May 25, 2026

CoinGlass data on liquidations suggests a cautious approach is warranted. There’s a large concentration of short positions likely to be liquidated between approximately $87 and $91.30. Additionally, there’s still considerable potential for further price drops, with notable liquidity levels around $81 and below $80.

If Solana (SOL) rises above $87, it could trigger a wave of selling by those betting against it, potentially causing a quick price increase toward $90–$91. However, if it fails to stay above that level, the price could fall again, potentially testing lower support levels.

Traders are watching to see if Solana (SOL) continues to fall, creating a pattern of lower highs under its moving averages. If the price drops below $87 and stays there, it would suggest further declines are likely, potentially pushing the price down to between $70 and $78.

A lack of strong buying activity is still a worry for those optimistic about the market. While prices have tried to recover recently, trading volume has been much lower than it was during the sharp drop in May, indicating buyers aren’t fully confident at these prices.

What could invalidate the bearish Solana outlook?

If the price stays above the 100-day simple moving average and breaks past $90, it would significantly reduce the likelihood of further price declines. This could then open the door for a move towards the $96 level, where the price previously faced strong selling pressure earlier in the month.

More money coming into the market from investments in ETFs, especially related to Solana, could boost investor confidence. If the U.S. government approves applications for Solana ETFs, it could also lead to increased buying activity and renewed interest in Solana and related projects.

Solana’s increasing activity in areas like real-world assets and stablecoins could offer long-term investors added confidence. Even with recent price drops, the network continues to gain traction through partnerships with businesses and improvements to its payment systems, which are key to wider adoption.

Later this year, the overall economic situation might become more favorable for crypto markets. If inflation slows down, the job market weakens, or the economy starts to grow at a slower pace, people might expect the Federal Reserve to lower interest rates. This could make it easier for investors to buy riskier assets like cryptocurrencies.

Honestly, I’m getting a little worried. If Bitcoin keeps dropping and pulls all the other cryptos down with it, that would really confirm my fears. Things like high inflation, expensive oil, or any new trouble in the world could make investors shy away from risky assets like crypto, and that could trigger a lot of forced selling. It’s a situation I’m definitely watching closely.

Experts predict Solana’s price might rise again if it falls to around $80, which is a key support level. Technical analysis, specifically using Elliott Wave theory, indicates buyers could try to push the price back up from that point.

Currently, Solana (SOL) is facing a mixed situation. While its underlying technology and growing user base remain strong, some technical indicators suggest potential weakness. Positive signs like increasing institutional investment, businesses building on the network, and more activity on the blockchain support a positive long-term outlook. However, decreasing use of borrowed funds, concerning chart patterns, and general economic uncertainty are making traders cautious about a possible price drop below $80 in the near future.

Read More

2026-05-26 11:54