Solana (SOL) has managed to hold above the $80 support zone despite mounting selling pressure, with the token trading near $82 on May 29 after briefly falling toward the $80 region during a broader crypto market correction. According to data from crypto.news, the token remains down roughly 16% from its May high near $98 as traders continue to react to macroeconomic uncertainty, whale selling activity, and renewed geopolitical tensions in the Middle East. The token's ability to maintain this crucial support level has provided some relief to bullish analysts who argue that $79-$80 represents a pivotal technical area that could determine the direction of the next major move.
Analyst Scient from crypto.news argues that $79-$80 is the most important level on Solana's weekly chart, stating that "holding it and the setup remains intact. Lose it and price likely revisits the mid $20s." The analyst highlighted a broader multi-year structure stretching back to the previous bull cycle, noting that Solana has attempted to break above the $210 region on three separate occasions since 2021 but has failed each time. According to More Crypto Online analysts, Solana could decline toward $62 if it fails to hold the key $72-$78 support zone, while a rebound above the May 12 high near $98 could pave the way for a move toward the $110 level. The weekly chart shows SOL trading near the lower boundary of a large consolidation range that has contained price action for more than a year.
Institutional demand has weakened sharply since early May, with Goldman Sachs fully exiting its Solana ETF exposure during the latest reporting period. According to crypto.news, the latest selloff accelerated after Bitcoin slipped below the $73,000 level and Ethereum dropped under $2,000 during a sharp market-wide correction tied to escalating tensions between the United States and Iran. Oil price rallies on fears of supply disruptions in the Strait of Hormuz revived inflation concerns, reducing appetite for high-risk assets such as Solana. The institutional exodus extends beyond Solana, with Goldman Sachs also reducing its Ethereum ETF position by approximately 70% during Q1 2026, leaving only about $114 million invested through BlackRock products. On-chain activity has added further pressure, with reports that a long-term Solana whale had unstaked and sold more than $137 million worth of SOL, adding significant supply to the market during an already fragile period.
The daily chart shows Solana forming a bearish double top pattern after failing twice near the $98 resistance area in March and May, with the structure developing just below the 0.786 Fibonacci retracement level at $93.7. As reported by crypto.news, the token has fallen below several short-term support levels near $90 and $85, while the daily Supertrend indicator remains bearish around $91 and the MACD continues to trend below its signal line. A separate longer-term chart structure shows SOL trading inside what appears to be a bearish flag formation following its collapse from the 2025 highs. CoinGlass liquidation data reveals dense leverage clusters between $83 and $84, with a large cluster of leveraged positions sitting near the $80 level making it one of the most significant liquidity zones. The heatmap suggests volatility could increase sharply if SOL breaks away from its current range, with a move below $80 potentially triggering another wave of long liquidations toward the $75-$77 region.
Despite current headwinds, some analysts believe Solana remains at a pivotal technical level that could determine the direction of the next major move. According to Solana Media analysis, the breakdown from a previously sustained support range has significant implications for price, with the recent decline potentially exposing the token to deeper downside if macro conditions continue deteriorating. The institutional exodus from altcoin ETFs, particularly Goldman Sachs' complete exit from Solana ETFs, suggests broader market skepticism toward these products and their ability to survive institutional rotation. However, traders remain focused on the $80 region as the most critical near-term support, with recovery above $84 needed to revisit the $88 resistance cluster. The ongoing drop coincided with a sharp risk-off move across digital assets after Bitcoin slipped below $73,000 and Ethereum briefly traded under $2,000, with concerns over potential disruptions to shipping routes through the Strait of Hormuz pushing Brent crude oil prices higher and reviving inflation fears.
