Solana prints 8 straight red monthly candles as analyst calls for 2024-style reversal

Solana has logged eight consecutive red monthly candles for the first time in its history, a streak that one analyst says mirrors the setup before its 2024 breakout.

Solana fell to $68.53 on June 4, its lowest since December 2023, after printing eight straight red monthly candles — a first in the token's history.

"Solana has never seen eight consecutive red monthly candles before. Historically, such extreme oversold conditions have preceded major reversals," Crypto Patel, a crypto analyst, said.

The selloff accelerated this week as $88.45 million in SOL positions were liquidated across exchanges in 24 hours, with long traders absorbing $83.53 million — roughly 94% of the total, according to Coinglass data. Daily active addresses on Solana have fallen to about 2.91 million from a February peak near 5.5 million, Santiment data shows, while social volume dropped to 39, near the bottom of its three-month range.

The eight-month losing streak has pushed SOL 77% below its January 2025 all-time high of $294, but institutional flows tell a different story. U.S. SOL spot ETFs recorded zero outflow days in May, pulling in $115 million in the strongest monthly inflow of 2026, according to Sosovalue data.

The divergence between spot ETF demand and futures market positioning is widening. Open interest in SOL futures dropped 30% in May to $1.90 billion from $2.75 billion, Coinglass data shows, as leveraged traders reduced exposure even as institutional products absorbed supply.

On-chain fundamentals are strengthening beneath the price weakness. Solana handled $36.87 billion in DEX volume in May, surpassing Ethereum's $31.59 billion, DefiLlama data shows. The network now processes 32.6% of global stablecoin transfers, overtaking Ethereum's 27.8% in adjusted weekly volume. PayPal's PYUSD has expanded its merchant pilot to Solana for cross-border payments, and Shinhan Card, South Korea's largest card issuer, signed an MOU with the Solana Foundation in April to bring stablecoin payments to its 28 million cardholders.

The Alpenglow upgrade, which went live on a community validator test cluster on May 11, targets mainnet in Q3 2026 and aims to cut transaction finality from 12.8 seconds to roughly 150 milliseconds. The market barely reacted to the testing announcement — SOL rose just 0.9% that day — suggesting the upgrade's potential impact remains unpriced.

Risks persist. The FTX bankruptcy estate continues offloading roughly $16 million to $17 million in SOL monthly, and Pump.fun deposited over 4.2 million SOL worth approximately $738 million into exchanges in May, creating sustained sell-side pressure. Competitors including Sui and Base are narrowing Solana's technical lead.

For SOL to stage a repeat of its 2024 recovery, bulls need to reclaim the $83 to $84.65 support zone and break above $86 resistance. A clean daily close above $87 would confirm a short-term turn and open the path toward $90, according to technical analysis.

This article is for informational purposes only and does not constitute investment advice.