Solana (SOL) has fallen more than 21% from its June high and is now testing a critical support zone near $60. According to data from crypto.news, SOL traded around $66 on June 9 after briefly hitting a local low near $60.41 during last week's crypto market selloff. The downturn accelerated as long-term holders reduced exposure aggressively: net positions among addresses holding SOL for at least 155 days dropped from 3.27 million SOL on May 31 to 2.36 million SOL by June 6.
On-chain 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 declined from 30.4% to 22.6%. A sharp slowdown in speculative meme-coin trading removed one of the network's primary demand drivers.
Whale and Institutional Sales Add Supply Pressure
Corporate treasury activity added another supply source. A June 9 disclosure revealed 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 marks the company's first publicly disclosed SOL sale since September 2025 and came just before the token tested its lowest levels of the year.
Macroeconomic conditions remain unfavorable for high-beta crypto assets. Persistent interest rate uncertainty, reduced institutional appetite for altcoins, and capital rotation toward defensive assets have created a risk-off environment that amplified local selling pressure across the Solana ecosystem.
Technical Structure Points to Deeper Retracement
The weekly chart shows SOL trading below the 0.786 Fibonacci retracement level near $74 after losing a descending channel that had contained price action since early 2026. The token 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. Crypto analyst cyclop noted, "Waiting for a bounce from trendline. We could well hit even $30-$40 soon."
Momentum indicators continue to favor sellers. The daily chart shows Chaikin Money Flow at approximately -0.17, confirming sustained capital outflows. MACD remains below the signal line on both daily and weekly timeframes, while the weekly Stochastic RSI has turned lower after rejecting overbought territory, indicating further weakening of bullish momentum. Price action sits below several former support zones now turned resistance: the first recovery hurdle near $74, followed by the $90-$100 range where multiple failed rallies occurred during the first half of 2026.
Network Upgrades and Long-Term Accumulation May Limit Downside
Fundamental developments continue to underpin the longer-term case. Solana recently introduced native subscriptions and spending allowances, expanding recurring payment functionality. Upcoming major upgrades — the Alpenglow consensus overhaul and Firedancer validator client — are expected to improve network performance and transaction finality, which many view as key catalysts for the next expansion phase.
Still, downside risks remain significant. A breakdown below the June low near $60 would likely attract additional selling 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.