Solana (SOL) has rebounded above $66 on June 8 after briefly falling below $61 during last week's market-wide selloff, according to crypto.news data. The token's recovery followed six consecutive days of losses that pushed the token down more than 20% from levels seen at the start of June, marking a decisive breakdown from the $76.6-$77.6 multi-month range that had maintained price stability since February. As per latest analysis, the recovery arrived as selling pressure began to exhaust itself after one of the sharpest declines Solana experienced this year, with dip buyers returning and establishing a short-term trading range between roughly $60 and $68. The rebound directly from the 0 Fibonacci retracement level near $60.3, which coincides with the asset's lowest price since early 2023, demonstrates aggressive buyer defense of critical support levels.
Fresh institutional data has added challenges for Solana bulls, with Spot Solana ETFs recording net outflows in the past two trading days, ending a stretch of positive flows that had remained intact since May. According to SoSoValue data, the reversal came as investors reassessed risk exposure following stronger-than-expected U.S. economic data and renewed pressure across digital assets. A stronger macro backdrop for the U.S. dollar also weighed on sentiment, with June 5 non-farm payrolls data exceeding expectations, prompting traders to reduce expectations for Federal Reserve rate cuts later this year. Treasury yields climbed while risk assets sold off, contributing to sharp declines across both Bitcoin and major altcoins. On-chain activity showed continued distribution from larger market participants, with several whale wallets and institutional entities moving substantial amounts of SOL toward exchanges during the selloff, increasing available supply at a time when market demand was already weakening.
The decline coincided with massive liquidation events across derivatives markets, with CoinGlass data showing $88.45 million in total liquidations over the past 24 hours, with $83.53 million worth of long positions liquidated. This forced selling occurred alongside a broader crypto market rout that erased roughly $1.8 billion in leveraged positions after Bitcoin fell below the $66,000 threshold. The selling pressure was further amplified by deteriorating risk sentiment following renewed geopolitical tensions in the Middle East. Derivatives data highlights where traders are concentrating risk, with CoinGlass liquidation heatmaps showing a large cluster of leveraged positions sitting between $75 and $77, with another significant concentration above $80. A move into those regions could trigger short liquidations and accelerate upside momentum if buyers regain control.
Technical indicators show mixed signals as Solana recovers from extreme oversold conditions. The daily chart shows SOL rebounding directly from the 0 Fibonacci retracement level near $60.3, with several key resistance levels remaining overhead. The first major barrier sits near $81, which aligns with the 0.236 Fibonacci retracement level, while traders are watching the $94, $104 and $115 zones corresponding to higher Fibonacci retracement levels. Moving averages continue to favor sellers, with Solana remaining below its 20-day, 50-day, 100-day and 200-day simple moving averages, which cluster between roughly $78 and $102. The daily MACD also remains below its signal line despite showing early signs of stabilization after the recent collapse. Crypto analyst Daan Crypto Trades noted that SOL has already delivered the type of move typically seen after a lengthy period of consolidation, stating that 'SOL Did indeed get that 20-30% move upon breaking the range' after 3+ months of compressed price action.
The leverage flush did not happen in isolation, with Solana network usage showing concerning decline that points to weakening underlying demand. According to Santiment data, daily active addresses peaked near 5.5 million in early February but have now dropped to around 2.91 million, roughly half the February high. This divergence between price consolidation and usage decline often warns that a sideways market lacks real support. The selling pressure was amplified by social volume trending lower, with the latest reading down at 39 near the bottom of its three-month range. Social dominance gained briefly in mid-May when SOL staged a short bounce, yet it has since rolled over to 0.687, with the token now commanding a smaller share of overall crypto conversation. The pattern shows that bursts of chatter did not put a floor under price, and each spike in attention was sold into rather than bought, leaving little fresh demand to defend support.
