Why Sol price down ?🥵

Solana's 3.3% price drop in 24 hours reflects a mix of market-wide panic from the Musk-Trump feud, regulatory uncertainty around staking ETFs, and technical breakdowns below key support levels.

Market-wide panic from Musk-Trump clash triggered $986M liquidations.

SEC scrutiny over Solana-based staking ETFs dampened institutional sentiment.

Technical breakdown below $160 support and bearish momentum indicators.

Deep Dive

1. Primary catalyst: Musk-Trump feud spooks markets

The public clash between Elon Musk and Donald Trump on June 5–6 triggered a crypto-wide selloff:

$986M liquidations in 24 hours (358% spike vs previous day)

SOL fell 5.2% alongside Bitcoin’s 4% drop (CoinMarketCap)

Tesla shares plunged 15%, amplifying risk-off sentiment in tech-correlated assets like crypto.

This political volatility overshadowed bullish fundamentals, including $1B+ SOL accumulation by institutional buyers like SOL Strategies in recent weeks.

2. Supporting factors: Regulatory headwinds

SEC concerns: On May 30, the SEC questioned the legality of proposed Solana staking ETFs, creating uncertainty about institutional demand (NullTX).

Derivatives data: SOL open interest fell 5.5% to $2.87B since May 30, with funding rates turning negative (-0.0044%).

3. Technical context: Breakdown accelerates

SOL broke critical levels amid high volatility:

Key support lost: $160 (20-day MA) and $155 (Fibonacci 78.6% retracement)

Indicators: MACD histogram at -3.99 (strong bearish momentum), RSI(14) at 33 (approaching oversold)

Next support zones: $144–$148 (May 30 low) and $135–$140 (March accumulation area).

Conclusion

SOL’s drop reflects crypto’s sensitivity to macro shocks and regulatory risks, amplified by technical breakdowns. While network fundamentals remain strong (1.4M new tokens created in May), traders should watch for $144–$148 demand reactions and SEC developments.

Will Solana’s institutional accumulation offset the regulatory overhang if market sentiment stabilizes? #sol #solana