Solana’s Critical Support Level Holds Amid Market Turbulence

Solana (SOL) is currently navigating a volatile market environment, with its price hovering around $157.53 USDT after failing to break the $180 resistance level. The broader crypto market correction, influenced by geopolitical tensions and US-China trade disputes, has added pressure to risk assets like SOL. Analyst Ali Martinez highlights $159 as a pivotal support zone for Solana. Maintaining this level could pave the way for a bullish resurgence, potentially driving the price back toward $180. This article delves into Solana’s current market position, key support levels, and future price potential amidst ongoing macroeconomic uncertainties.

Solana Holds Key Support Amid Market Volatility

Solana faces pressure after failing to reclaim the $180 resistance level, mirroring a broader crypto market correction. The pullback coincides with heightened geopolitical tensions and US-China trade disputes, creating headwinds for risk assets.

Analyst Ali Martinez identifies $159 as a critical support zone for SOL. A sustained hold above this level could signal bullish continuation, potentially reigniting momentum toward $180. Market participants remain vigilant, balancing technical thresholds with macroeconomic crosscurrents.

While Bitcoin and ethereum dominate market attention, Solana’s tight consolidation below $180 reflects subdued volatility. This quiet accumulation phase often precedes significant moves, with traders monitoring for breakout confirmation.

Solana’s 11.5% Drop Sparks Capitulation Fears as Realized Losses Mount

Solana’s SOL token has tumbled 11.54% this week, breaking below the $160 support level as on-chain metrics flash warning signs. The network’s net realized profit/loss metric turned negative for the first time in two months, signaling growing investor unease.

Current price action mirrors February’s brutal 56% collapse that bottomed NEAR $95. Approximately $323 million in realized losses have been recorded at the $156 level, suggesting weak hands are exiting positions. Market sentiment has shifted dramatically from last week’s $170-$185 consolidation, when FOMO dominated trading psychology.

Glassnode data reveals this pattern of mounting realized losses typically precedes major capitulation events. While full-scale surrender hasn’t yet materialized, the ecosystem shows concerning parallels to previous downturns. The question now becomes whether this is the final flush before recovery or the beginning of another extended decline.

Solana’s June Outlook: Two Catalysts for a Potential SOL Rally

Solana enters June at a crossroads. The cryptocurrency closed May at $161, down 10.9% weekly amid broad market weakness. Yet beneath the surface, two powerful drivers could reignite bullish momentum.

Institutional interest remains strong, with six spot solana ETF applications pending from heavyweights including Fidelity and VanEck. While regulatory delays persist, the sheer volume of filings signals Wall Street’s growing conviction in SOL’s fundamentals.

Technical factors also suggest oversold conditions. The 10% weekly drop positions SOL near key support levels, with historical patterns showing strong summer rebounds after May pullbacks. Market makers note open interest in SOL derivatives remains elevated despite the price decline—a classic contrarian signal.

FTX Repays $5 Billion in Second Round as Market Eyes Altcoin Season

FTX has disbursed $5 billion in its second round of repayments, marking a significant milestone in the collapsed exchange’s bankruptcy proceedings. This follows an initial payout of $1.9 billion, with BitGo and Kraken facilitating the distribution. Payouts began May 30 and are expected to conclude within one to three business days.

John RAY III, FTX’s CEO, emphasized the progress in returning funds to customers and creditors, though work remains to resolve outstanding claims. Creditors receive varying amounts based on classification—72% for Dotcom Entitlement Claims and 54% for US Customer Entitlement Claims. Convenience Claimants, typically smaller holders, are also included.

The market watches closely, speculating whether the influx of capital could ignite an altcoin rally. Sunil Kavuri, a creditor advocate, noted Kraken’s processing of $312 million in US claims, with international distributions slated for June 2.