Solana (SOL) rebounded from the $170 area on Tuesday and retested the $175 level.
Over the past 24 hours SOL has been largely flat, and it has gained only about 4.5% over the last week. If bulls fail to sustain momentum, prices could slide again.
Leading on-chain analytics provider Glassnode flagged this risk for Solana.
Although not large, the platform’s analysts highlighted that Solana—ranked sixth by market cap—now shows a negative funding rate.
Among the top 10 non-stablecoin assets, SOL is the only one with a negative funding rate, which analysts view as an early signal of mounting short-term selling pressure.
“SOL is the only top-10 asset (excluding stablecoins) with a negative funding rate. At -0.0002% it’s small — but could indicate early building short-side pressure,” Glassnode posted on X.
As Glassnode emphasized potential headwinds for SOL’s price, QCP Capital also shared a cautious market outlook, advising traders to size positions carefully.
Meanwhile, Bitcoin (BTC) continues to trade in a range between roughly $107 and $110. Spot exchange flows for the top crypto have helped bulls defend gains, but implied volatility at the front end remains elevated, suggesting deeper concerns beneath the surface.
“Front-end implied volatility remains high, indicating deeper worries beneath the surface,” QCP noted.
QCP added that with major Bitcoin events such as Bitcoin 2025 kicking off in Las Vegas, crypto traders may be actively repositioning ahead of and during the conferences.
The Bitcoin 2024 lineup included high-profile attendees and speakers. Coverage and notable appearances drew attention and were a factor in recent market moves.
Analysts noted that after the 2024 conference, Bitcoin pulled back significantly and that risk sentiment has been a contributing factor.
Reports that Trump Media might announce a potential $3 billion crypto investment target have also been cited as a factor potentially supporting market sentiment.
Solana Price Outlook — What’s Next?
Although Solana rebounded from support near $170, SOL still trades below recent highs.
After rising from a late-April low near $140, bulls pushed SOL to a mid-May peak around $184 and retested resistance on May 23. Following a period of consolidation, the top-10 altcoin has pulled back into a key support area.
Glassnode’s data suggests that SOL could be vulnerable to another leg down if short-side pressure builds further.
A look at the daily chart shows some upside space exists for bulls. The RSI indicates Solana recently moved out of overbought territory and sits around the mid-50s (about 57), which is neither extreme bullish nor bearish.
That said, trading volume has notably declined. SOL’s daily volume fell from roughly $5.2 billion on May 23, 2025 to about $2.9 billion on May 27, underlining weaker conviction behind the move.
Solana price chart provided by TradingView
Crypto analysts suggest a corrective decline is possible as bulls show signs of fatigue. However, if price holds above $170 within an ascending-triangle structure, bullish sentiment would strengthen.
Similarly, if pullbacks find buying interest at the $160 support zone, the same positive scenario plays out and could trigger a squeeze toward the $200 psychological target.
Conversely, if sellers step up pressure and break $160, Solana could face deeper losses and a sharper downward spiral.