Will Solana end its losing streak and defend the $65 support level?

Solana (SOL) posted its eighth consecutive monthly loss in May, indicating the persistent selling pressure despite a growing list of institutional partnerships and blockchain-based financial initiatives.

The ongoing downtrend shows a disconnect between Solana’s expanding real-world utility and investor sentiment, with broader market weakness continuing to weigh on the token’s price performance.

The momentum indicators remain extremely bearish, indicating that the market selloff might not be over yet. 

Institutional adoption accelerates across the Solana network

SOL has lost 10% of its value in the last 24 hours and is now trading around the $67 mark.

The bearish performance comes despite growing institutional adoption across the Solana network. 

Last month, several major financial firms—including Mastercard, Western Union, State Street, and SoFi—launched stablecoin and tokenized asset initiatives on Solana, expanding the blockchain’s role in traditional finance.

Among the most notable developments was Mastercard’s decision to utilize Solana for regulated stablecoin settlement. 

Meanwhile, the network processed more than $832 billion in stablecoin transfer volume during the first quarter of 2026, indicating a surge in adoption for financial transactions.

Despite these milestones, the positive fundamentals have yet to translate into stronger price action.

The derivatives data indicate that retail traders are reducing their exposure to the market.

According to CoinGlass, Solana’s futures Open Interest reads $4.91 billion, down from the average of $7.5 billion recorded in May.

The long-to-short ratio has declined below 1 and now reads 0.9433. This metric dropping below one indicates that the bears are currently controlling the market. 

The SOL OI-Weighted Funding Rate of -0.0093% adds further confluence to the bearish narrative in the derivatives market. 

Solana price outlook: technical indicators continue to favor bears

The SOL/USD 4-hour chart is bearish,  with technical indicators pointing to ongoing weakness.

At press time, Solana is trading at $76, below the 20-day moving average ($72.49) and the 50-day moving average ($74.96)

Several momentum indicators continue to support a bearish outlook.

The RSI has dropped to 26, indicating that Solana is now in the oversold region.

The MACD and CCI indicators are also flashing selling signals. 

If the bearish trend persists, SOL could lose the $65 support level in the near term.

A daily close below $65 could expose Solana to the $50 psychological level. 

However, if the $65 support holds, it would allow the bulls to aim for a recovery towards the $75.07 resistance level. 

A decisive close above $75 could pave the way for SOL to extend its rally towards the $88 resistance zone in the near term. 

However, the most likely near-term scenario is continued consolidation within this range.

A break below $65.39 could trigger another leg lower, while a sustained move above resistance would be needed to improve the technical outlook and attract fresh buying interest.

For Solana to embark on a sustained rally, the macroeconomic conditions in the market need to improve.

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