Solana (SOL) is under the spotlight as a recent surge in selling activity from long-term holders has put its price recovery at risk. After a sharp drop from $176 to $141 in just over a week, the token is struggling to regain momentum, with technical indicators and investor sentiment both signaling caution.
Long-Term Holders Shift to Selling
Traditionally, long-term holders (LTHs) are seen as the backbone of any crypto asset’s price stability. However, recent data shows that these investors have started offloading their SOL holdings at the fastest pace in two months. This shift suggests a potential loss of confidence among some of the most patient market participants, raising concerns about short-term price stability.
Bearish Technical Signals Dominate
From a technical perspective, Solana is facing headwinds. The 50-day and 200-day Exponential Moving Averages (EMAs) are both trending downward, and the persistent “Death Cross” pattern—where the 50-day EMA remains below the 200-day EMA—continues to cast a bearish shadow over the market. Although there was a brief attempt at recovery in late May, the 50-day EMA failed to cross above the 200-day EMA, indicating that bullish momentum remains weak.
Key Levels to Watch: Resistance and Support
Currently, SOL is trading around $152, with a critical resistance level at $154. If the price fails to break above this barrier, analysts warn that a pullback toward $144 is likely, and a further drop to $136 could follow if that support doesn’t hold. On the flip side, a successful breakout above $154 could open the door for a rally toward $161, potentially reversing the bearish trend and restoring investor confidence .
Market Outlook for June 2025
Looking ahead, forecasts suggest that Solana’s price in June 2025 will likely fluctuate between $150 and $195, with key resistance at $165. If bullish momentum returns and SOL reclaims the $165–$170 range, a move toward $183–$195 is possible. However, if selling pressure persists, the token may revisit lower support levels around $148–$150. The overall trend remains cautiously optimistic as long as SOL stays above these critical levels .
What Should Traders Watch?
• Resistance at $154: A decisive move above this level could signal a short-term reversal.
• Support at $144 and $136: Failure to hold these levels may trigger further declines.
• Broader Market Sentiment: Improvements in the crypto market could help SOL break out of its current downtrend.
