SOLUSD
There was a strong uptick at the beginning of May, but it lost momentum as the month progressed, leading to a period of consolidation. After reaching an early peak, Solana's price fluctuated within a narrow range. However, despite the sideways movement, investors continued to accumulate Solana in anticipation of a potential breakout. With the altcoin finishing May relatively stable, there are significant factors that could affect its price movement in June.
Solana needs institutional support
In May, institutional interest in Solana was significantly low. The market was overshadowed by the rise of SUI, a new blockchain that presented more opportunities for developers and gained significant momentum. While SUI saw inflows of $23.9 million, Solana attracted only a meager $0.5 million, making it one of the least preferred blockchain chains for institutional investors.
These inflows were even lower than Cardano ($1.9 million) and Chainlink ($1.1 million) for the same period, indicating that institutional interest in Solana has declined. As a result, institutions are likely to continue focusing on other blockchain projects in the coming months. The absence of participation from these investors may lead Solana to miss out on significant inflows, which could impact its long-term growth.
Solana Institutional Data
While institutional interest in Solana has declined, individual investors and whales remain confident in its future potential. The balance on exchanges shows a decrease of 4.13 million SOL, worth over $677 million, during the past month. This trend indicates that both small individual investors and large whales believe Solana is undervalued at its current price.
The ongoing accumulation of SOL also prevents the altcoin from recording sharp declines, even amid broader market volatility. This conviction from investors suggests that Solana's price may not face significant drops in June, even if there is a bearish sentiment in the broader cryptocurrency market.
Solana Exchange Balance.
SOL price could record gains in June
At the time of writing this report, Solana's price is $164, indicating an increase of 11.5% since the beginning of May but a decline of 12% from the month's high. Given the mixed signals from institutional flows and retail accumulation, Solana is expected to remain range-bound during June. It is likely to continue oscillating between support at $161 and resistance at $178, with a strong push from the broader market needed to break through key upper levels.
If Solana can break the resistance at $178 and secure a position above it, the price could rise toward $188. This movement will be supported by the upcoming Golden Cross pattern, where the 50-day moving average crosses above the 200-day moving average. The crossover indicates bullish momentum, and if confirmed, it could bring Solana closer to its highest levels in several months.
Solana price analysis.
However, investors should note that June has historically proven to be a bearish month for Solana. Data from Cryptorank shows that over the past five years, the monthly return on investment ranged from negative to positive. But the median return on investment stands at -8.97%.
Monthly returns of Solana.
Therefore, if history repeats itself and broader market signals turn negative or investors decide to take profits, Solana may face a downturn. A drop below the support at $161 could raise concerns, potentially sending the price down to $150 or even $144. This scenario would invalidate the bullish thesis and may indicate upcoming losses for SOL holders.
