What can be expected from Solana (SOL) in June?

Solana (SOL) had a rise to the sky at the beginning of May but then gradually lost momentum, leading to a consolidation phase. After reaching a high at the beginning of the month, the price of Solana fluctuated within a narrow range.

However, despite the market being in a consolidation phase, investors continue to accumulate Solana with the expectation of a breakout. As this altcoin ends May relatively stable, there are several important factors that could affect price volatility in June.

Solana needs support from organizations

In May, interest from institutional investors in SOL was quite low. The market was overshadowed by the development of SUI – a newer blockchain that offers many opportunities for developers and has attracted significant attention. While SUI recorded an inflow of 23.9 million dollars, Solana only attracted a mere 0.5 million dollars, making it one of the least favored blockchains among institutional investors.

This figure is even lower than Cardano (1.9 million la) and Chainlink (1.1 million la) over the same period, indicating a decline in institutional investor interest in Solana. Therefore, in the coming months, institutional investors will likely continue to focus on other blockchain projects. The lack of participation of these investors will cause Solana to lose large-scale capital inflows, thereby negatively affecting long-term growth.

Institutional Investor Data | Source: CoinsharesAlthough interest from institutional investors in Solana has declined, retail investors and whales still seem confident in the coin's future potential. SOL balances across exchanges have decreased by 4.13 million SOL, or more than $677 million over the past month. This trend shows that both retail investors and big whales believe Solana is undervalued at its current price.

The continuous accumulation of SOL also helps this altcoin avoid sharp price drops, even when the crypto market as a whole is highly volatile. Strong confidence from investors indicates that the price may not face significant downward pressure in June, even if the overall market sentiment turns negative.

SOL balance on exchanges | Source: Glassnode## SOL price may record a rise to the sky in June

At the time of writing, SOL is at $172, up 15% from the beginning of May but down 12% from the month's high. In the face of mixed signals from accumulated institutional and retail investors, it is expected that Solana will continue to trade in a narrow range throughout June. It is highly likely that the price will hover around the $161 support and $178 resistance, provided that a strong push from the general market is needed to be able to break through the higher levels.

If SOL can break through the $178 resistance and maintain a position above this level, the price could rise to the $188 area. This move will be supported by the upcoming golden cross pattern, as the (EMA 50) 50-day moving average crosses above the (EMA 200) 200-day moving average. This crossover is a signal that bullish momentum is forming, and if confirmed, it could bring Solana closer to multi-month highs.

! SOL SOL Price Analysis | Source: TradingViewHowever, investors should note that history shows that June is usually a bearish month for Solana. Data from Cryptorank shows Solana's (ROI) monthly return has ranged from negative to positive over the past 5 years, but the median ROI is -8.97%.

Solana Monthly Profit | Source: CryptorankTherefore, if history repeats itself and the general market becomes negative or investors decide to take profits, SOL may face a decline. If the price drops below the $161 support level, this will raise concerns and could drag the price down to the $150 or even $144 zone. This scenario would negate the bullish outlook and could signal upcoming losses for SOL holders.

Minh Anh