Solana’s Bullish Structure Holds Amid Negative Funding Rates and Consolidation Below $180

Solana (SOL) is currently experiencing a period of consolidation below the critical $180 resistance level, despite a recent strong rally. While the asset’s bullish structure remains intact, upward momentum has stalled, creating a tense market atmosphere. Buyers are still in control but face significant challenges in pushing SOL decisively above this key barrier. According to Glassnode data, Solana stands out as the only top 10 cryptocurrency (excluding stablecoins) with negative funding rates, which could be an early sign of selling pressure. As of May 28, 2025, SOL is trading at 178.30 USDT. This article delves into the current state of Solana, exploring the implications of negative funding rates and the potential for a breakout or further consolidation.

Solana Funding Rates Turn Negative – Early Sign of Selling Pressure?

Solana’s price action shows consolidation below the $180 resistance level, despite a recent strong rally. The asset’s bullish structure remains intact, but upward momentum has stalled, creating a tense market atmosphere. Buyers maintain control but face challenges in pushing SOL decisively above this critical barrier.

Glassnode data reveals solana as the only top 10 cryptocurrency (excluding stablecoins) with negative funding rates. This divergence suggests growing short-side pressure in derivatives markets, even as spot prices hold steady. Traders appear increasingly bearish, potentially signaling early stages of selling pressure.

Solana Proposes Radical Overhaul with Alpenglow for 100x Speed Boost

Solana is poised to abandon its signature Proof of History mechanism in favor of a new design called Alpenglow, promising a 100-fold increase in transaction finality speed. The proposal, detailed in a technical post by infrastructure firm Helius, aims to position Solana as a competitor to centralized Web2 systems.

The Alpenglow initiative emerges from Anza’s research division under ETH Zurich’s Professor Roger Wattenhofer, whose recent work identified liveness flaws in Solana’s current protocol. This marks Solana’s most ambitious consensus rewrite to date, targeting real-time application capabilities.

Sonic SVM Unveils Robust Ecosystem Spanning DeFi, NFTs, and Gaming

Sonic SVM, the first SVM chain extension on Solana, has revealed an expanding ecosystem of native projects across DeFi, NFTs, and gaming. The platform’s successful mainnet launch and Mobius Hackathon attracted over 250 project submissions, showcasing its high-performance infrastructure for next-generation Web3 applications.

"The rapid development of our ecosystem demonstrates the versatility and performance advantages of Sonic SVM," stated Chris Zhu, CEO and co-founder. The network’s flagship projects include SEGA, a next-generation DEX featuring ve(3,3) mechanics, highlighting Sonic SVM’s capacity to support innovative protocols.

Solana’s Bullish Reversal Sparks Analyst Optimism for $420 and Beyond

Solana (SOL) is exhibiting a textbook rounded bottom pattern breakout, surging 80% since mid-April, with analyst Mastor Ananda projecting parabolic moves beyond $420. The technical setup suggests new all-time highs may be imminent for the ethereum competitor.

Macroeconomic tailwinds could further fuel SOL’s ascent. Anticipated Federal Reserve rate cuts in coming months may catalyze altcoin rallies, though current market conditions show capital rotating into Bitcoin and gold as US-EU trade tensions escalate.

The analysis warns sidelined investors risk missing SOL’s mid-term growth potential. TradingView charts confirm the bullish reversal structure, with the SOL/USDT pair demonstrating strong momentum across major exchanges.