Solana Price News: SOL Faces 30% Downside Risk After Failing to Break Past $90

Published: June 03, 2026

Key Points

• Solana (SOL) has struggled to gain traction alongside other altcoins, primarily due to its limited use cases beyond meme coin trading.
• The price of SOL could potentially drop to $50 after failing to surpass the $90 mark during a recent rally.
• A significant bearish pattern has emerged, breaking a 5-month consolidation phase, indicating a potential acceleration in downward momentum.

Current Market Performance

Solana has been one of the worst-performing altcoins in the top 5, with a year-to-date loss exceeding 42%. The demand for meme coins has diminished, leading to selective investor interest in other tokens such as Zcash (ZEC), Hyperliquid (HYPE), and BNB (BNB), particularly following the launch of the first exchange-traded funds (ETFs) for these assets in the U.S.

Decline in Decentralized Exchange (DEX) Volumes

Despite a peak in transaction volumes within Solana reaching 959 million in early February, these figures have since plateaued around 700 million. DEX volumes have dropped significantly, down 62% from their January highs, indicating a waning interest in meme coin trading.

Technical Analysis and Future Outlook

On the weekly chart, key resistance levels for Solana are identified around $95-$100, with a potential support level at $50. The recent price action has rejected the $95 resistance, suggesting a possible decline towards the $50 target. The Relative Strength Index (RSI) is currently at 32, indicating bearish momentum, as readings below 40 are typically interpreted as sell signals.

While there is a chance for a rebound if SOL reaches a cycle low of $67, the project’s inability to attract real-world applications beyond speculative trading raises concerns about its future performance. Without new growth initiatives, Solana risks becoming stagnant, similar to the trajectory of Cardano.

Conclusion

Solana's recent breakout from a prolonged consolidation phase suggests a continuation of its downtrend, with analysts projecting a potential drop to $50. The lack of competitive edge and real-world use cases could hinder its recovery, especially as other cryptocurrencies continue to gain traction.