Solana has dropped more than 21% from its June high and is now testing a critical support zone near $60 after whale selling, weakening DeFi activity, and a sharp market-wide liquidation event erased several months of gains.
Summary
- Solana price has fallen more than 21% from its June high, with whale selling and weaker DeFi activity driving the decline.
- Technical charts show SOL testing critical support near $60, while a breakdown could open the door to the $40 region.
- Upcoming Alpenglow and Firedancer upgrades continue to underpin the network’s long-term growth narrative.
According to data from crypto.news, Solana (SOL) price traded around $66 on June 9 after briefly falling to a local low near $60.41 during last week’s crypto market selloff. The decline accelerated after long-term holders reduced exposure aggressively, with net positions among addresses holding SOL for at least 155 days falling from 3.27 million SOL on May 31 to 2.36 million SOL by June 6.
At the same time, activity across the Solana ecosystem weakened materially. DeFi-only total value locked fell 9.55% during the week, while Solana’s share of decentralized exchange volume dropped from 30.4% to 22.6%.
The reduction in on-chain liquidity arrived as speculative trading activity across memecoins slowed sharply, removing one of the network’s primary demand drivers.
Corporate treasury activity added another source of supply. A June 9 disclosure highlighted that SOL Strategies sold 65,001 SOL at an average price of CAD$87.88, raising roughly CAD$5.75 million to retire debt.
The transaction represented the company’s first publicly disclosed SOL sale since September 2025 and arrived shortly before the token tested its lowest levels of the year.
Macroeconomic conditions have also remained unfavorable for high-beta crypto assets. Persistent uncertainty around interest rates, reduced institutional appetite for altcoins, and capital rotation toward defensive assets contributed to a risk-off environment that amplified local selling pressure across the Solana ecosystem.
Technical structure leaves room for a deeper move toward $40
The weekly chart shows Solana trading below the 0.786 Fibonacci retracement level near $74 after losing a descending channel that had contained price action since early 2026. SOL price is now approaching the final major support trendline that has connected cycle lows since 2021.
A decisive break below the $60-$65 area could expose the next major support cluster between $40 and $30. According to crypto analyst cyclop, recent positioning reflects that possibility.
“Waiting for a bounce from trendline. We could well hit even $30-$40 soon.”
The same analyst noted that he filled part of a long-term bid near $60 while maintaining expectations for significantly higher prices later in the cycle.
Momentum indicators continue to favor sellers. The daily chart shows Chaikin Money Flow at approximately -0.17, confirming sustained capital outflows from the asset. MACD remains below the signal line on both daily and weekly timeframes, while the weekly Stochastic RSI has turned lower after rejecting overbought territory, suggesting bullish momentum has weakened further.
Price action also remains below several former support zones that have now turned into resistance. The first recovery hurdle sits near $74, followed by the $90-$100 range where multiple failed rallies occurred during the first half of 2026. Reclaiming those levels would be necessary before a durable trend reversal can be considered.
Network upgrades and long-term accumulation could limit downside
Fundamental developments continue to provide support for the longer-term investment case. Solana recently introduced native subscriptions and spending allowances, expanding recurring payment functionality for developers and users across the network.
Attention has also shifted toward major infrastructure upgrades. The upcoming Alpenglow consensus overhaul and Firedancer validator client are expected to improve network performance and transaction finality, developments that many investors view as important catalysts for the next expansion phase.
Downside risks remain significant, however. A breakdown below the June low near $60 would likely attract additional selling pressure and increase the probability of a move toward the $40 region highlighted by long-term trendline support. Further weakness in crypto investment flows, renewed geopolitical uncertainty, or another wave of ecosystem-related selling could accelerate that scenario.
For now, Solana remains caught between strong long-term fundamentals and one of its weakest technical structures since the 2022 bear market, leaving the $60 support zone as the most important level to watch in the weeks ahead.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
