Key Takeaways
- Open interest in Solana futures contracts declined 30% during May, dropping from $2.75 billion to $1.90 billion.
- Monthly SOL spot ETF inflows climbed to $113 million, marking the highest accumulation period in 2026.
- SOL currently trades around $80, testing the bottom of a three-month consolidation zone spanning $80 to $95.
- A decisive breach below $80 targets the annual low around $68, where more than $800 million in leveraged long positions face liquidation risk.
- Escalating US-Iran geopolitical conflict contributed to market volatility, temporarily dragging SOL down to the $80 threshold.
Throughout May, Solana (SOL) has faced sustained downward pressure as market participants reduced leveraged positions amid declining risk appetite across cryptocurrency markets. On Thursday, the digital asset briefly touched the $80 mark following an aggressive crypto market downturn sparked by news of military confrontations between the United States and Iran.
Across major trading platforms, futures open interest contracted to $1.90 billion from $2.75 billion recorded on May 11—representing approximately a 30% decline within a two-week timeframe. The aggregate funding rate remained relatively neutral near -0.005, indicating that neither bullish nor bearish traders have established dominant directional positions despite observable price deterioration.
The combined futures cumulative volume delta (CVD) for stablecoin-margined contracts sank to an annual nadir of -$13 billion, signaling persistent selling pressure within derivatives markets throughout the month.
Market analyst Sjuul from AltCryptoGems shared on X that SOL “looks very weak,” highlighting the rejection encountered at $98 and the subsequent downward trajectory. The analyst emphasized that crucial price levels have transformed into resistance barriers, particularly the $88 zone, and projected a potential decline toward the $76 support region if selling momentum persists. According to Sjuul, bulls would require a decisive recapture of $88 to shift the prevailing technical outlook.
Spot Market Demonstrates Resilience Amid Futures Contraction
Contrary to the bearish signals in futures markets, spot trading activity has exhibited greater stability. Spot CVD has climbed to $350 million since March, demonstrating that purchasers on spot platforms continued to accumulate SOL even as derivatives participants scaled back their positions.
SOL spot ETF activity reinforced this divergence. Net capital inflows totaled $113 million throughout May, establishing it as the most robust monthly performance for SOL exchange-traded funds in 2026. The juxtaposition of contracting futures participation alongside consistent spot accumulation generally suggests diminishing speculative fervor rather than widespread capitulation.
Cryptocurrency trader Cold Blooded Shiller characterized SOL as among the more vulnerable large-capitalization assets currently, observing that it has maintained a downward trajectory since October with minimal robust support beneath the $80 threshold.
Critical $80 Support Zone Under Examination
From a technical perspective, Solana has been confined within a trading corridor between $80 and $95 following a 42% correction during the first quarter. This lower boundary underwent renewed testing during midweek trading sessions.
Perpetual futures funding rates have turned negative, currently hovering around -0.0088% per Coinglass data, confirming that short position holders maintain market control.
The Relative Strength Index is nearing oversold readings, while the MACD indicator persists below its signal line, suggesting bearish momentum has yet to exhaust. Immediate overhead resistance is positioned at both the 50-day and 100-day simple moving averages.
Crypto market observer Zoe has established bid orders near $67, which corresponds to the yearly minimum and represents the most substantial concentration of leveraged liquidation exposure visible on open interest heatmaps.
Approximately $800 million in aggregate long leverage positions cluster around the $68 area. This price zone represents the critical threshold warranting attention should downward momentum intensify.
The post Solana (SOL) Experiences 30% Futures Interest Drop While Spot Demand Strengthens in May appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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