Solana has seen $SOL
A strong increase at the beginning of the month
May but it lost momentum as the month progressed, leading to a period of consolidation. After reaching an early high, 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 important 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 newer blockchain that offered more opportunities for developers and gained significant traction. While SUI saw inflows of 23.9 million dollars, Solana attracted only a negligible 0.5 million dollars, making it one of the least favored blockchains among institutional investors.
This inflow was even lower than Cardano (1.9 million dollars) and Chainlink (1.1 million dollars) for the same period, showing 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 lack of participation from these investors may cause Solana to lose substantial inflows, which could affect its long-term growth.
Solana institutional data. Source: Coins_hares
While institutional interest in Solana has declined, it seems that retail investors and whales are still confident in its future potential. The balance on exchanges shows a decrease of 4.13 million SOL, worth over 677 million dollars, over the past month. This trend indicates that both small retail investors and large whales believe Solana is undervalued at current levels.
The continuous accumulation of SOL also prevents the altcoin from registering sharp declines, even amid broader market volatility. This conviction from investors suggests that Solana's price may not face significant declines in June, even if there is a bearish sentiment in the wider cryptocurrency market.
Solana exchange balance. Source: Glass_node
SOL price may record gains in June
At the time of writing this report, Solana's price is 164 dollars, recording an increase of 11.5% from the beginning of May but a decrease of 12% from the month's high. Given the mixed signals from both institutional inflows and retail accumulation, Solana is expected to remain range-bound throughout June. It is likely to continue fluctuating between support at 161 dollars and resistance at 178 dollars, with key levels needing a strong push from the broader market to rise further.
If Solana successfully breaks the resistance at 178 dollars and secures a position above it, the price could rise towards 188 dollars. This movement will be supported by the upcoming golden cross pattern, where the 50-day exponential moving average crosses above the 200-day exponential moving average. The crossover indicates bullish momentum, and if confirmed, could bring Solana closer to multi-month highs.
Solana price analysis. Source: Tradin_gView
However, investors should note that June has historically proven to be a bearish month for Solana. Data from Crypt_orank shows that over the past five years, the monthly return on investment ranged from negative to positive. But the average return on investment is -8.97%.
Solana monthly returns. Source: Crypt_orank
Therefore, if history repeats and broader market signals turn negative or if investors decide to take profits, Solana may experience a decline. A drop below the support level of 161 dollars could raise concerns, potentially sending the price to 150 dollars or even 144 dollars. This scenario would invalidate the bullish hypothesis and may indicate upcoming losses for SOL holders.