As May came to a close, the Solana price took a hit since the Securities and Exchange Commission (SEC) expressed concern over the plan to launch 2 new ETFs involving Ethereum and Solana. With this, the SOL coin price slumped 11.45%. While the crypto market displayed a significant price action, the Solana token bounced between $155 and $185 for 23 straight days.
SOL On-chain Sentiment Suggests Increased Volatility
Solana records a constant rise in its new wallet addresses for the second straight month. The number of new wallets has increased from 98.33 million in March to 111.01 million in April, and 123.81 million in May. This highlights increasing user interest and adoption. Cumulatively, this is leading toward the growth of the network.
Due to the recent increase in the selling pressure amid the downturn, the OI-weighted funding rate has turned negative to -0.0027%. This highlights a significant decline in the bullish sentiment for Solana.
Solana Price Retests Its Crucial Support Around $150
Solana price is down by over 1% in 24 hours while the crypto market also experienced decreased volatility. With this, SOL has displayed a negative price action for the third consecutive day, according to Binance data. Moreover, the SOL coin has dropped approximately 11% in seven days and has displayed a monthly return of +4.93%.
The Relative Strength Index (RSI) indicator has recorded a sharp drop toward the oversold range and is currently at 41.66, signaling a bearish sentiment. Additionally, the average line acts as a resistance and is dropping toward its neutral point. Reportedly, this suggests a negative price action.
If the Solana price holds its bullish stance, it could retest its high of $177 from May 28. Further, rising investor’s optimism could push the value toward $200 for the first time since February 2025.
However, a failed bullish action could pull the price down to its immediate support of $150. Notably, increasing liquidation may result in SOL price crashing toward its April low of $127.
Also Read: BREAKING: Solana, Ethereum Staking ETFs Hit Roadblock with New SEC Letter
