Solana on May 29, 2025: Bearish Outlook Amid Market Pressures

Solana drops 2% to $172, pressured by institutional selling and ETF delays.

On May 29, 2025, Solana (SOL) has declined approximately 2% to $172, signaling a mildly bearish trend in the cryptocurrency market. This price drop occurs amid broader market pressures from institutional selling and economic uncertainties. Despite Solana’s strong performance in recent months, recent developments have weighed on its market outlook. From a technical perspective, Solana has formed a triple-top pattern after failing to break the $184 resistance, often a sign of market exhaustion. The Relative Strength Index (RSI) on the daily chart is around 48, indicating fading bullish momentum and approaching neutral territory. The key support level at $170 is critical, and a break below could push Solana toward $150. Conversely, resistance between $180 and $184 remains a barrier to upward movement. Derivatives data also shows an increase in short positions, reinforcing downward pressure. A primary driver of Solana’s decline is recent institutional selling. Reports suggest that some institutional investors are reducing their Solana positions, particularly after the price peaked at $187 last week. These sales have coincided with high trading volumes during volatile market hours. Additionally, delays in decisions regarding Solana exchange-traded funds (ETFs) by regulatory bodies have dampened investor confidence. These delays, extended until October 2025, have introduced uncertainty into the market. Nevertheless, Solana’s ecosystem retains strengths. Decentralized finance (DeFi) activity on the Solana chain remains robust, with daily decentralized exchange (DEX) trading volumes nearing $10 billion. The recent Alpenglow network upgrade, aimed at improving transaction speed and near-instant finality, has attracted developer interest. These factors could support Solana’s price in the long term. Macroeconomic factors also play a significant role. Uncertainty in monetary policies and global trade tensions have made investors cautious, reducing liquidity flows into high-risk assets like cryptocurrencies. The reduction in Solana’s exchange supply to 86.5% of circulating supply indicates some investors’ preference for long-term holding, but this has yet to offset short-term selling pressure. Analysts suggest that Solana may face challenges in the short term, but its long-term outlook remains positive, particularly if ETFs are approved. Some forecasts project prices reaching $250 to $350 by the end of 2025, contingent on improved market conditions. Traders should monitor the $170 support level and consider risk management strategies, such as staggered buying in this range. In summary, Solana on May 29, 2025, is at a critical juncture. Short-term pressures may drive prices lower, but the ecosystem’s long-term potential remains promising. Traders should exercise caution and wait for clearer signals before entering the market.