Solana Drops by 5% as Late-Night Selling Reflects Institutional Forces

Key Points:

Ongoing global trade disputes and monetary policy volatility are causing fluctuations across the cryptocurrency sectors. During Solana’s midnight trading session, transaction volumes peaked at 1.26 million.
The SOL token saw a sharp 4.5% decrease, dropping from $177 to locate support at $170.41 amidst significant institutional sell-offs.
A new alliance between the Solana Foundation and R3 is set to tokenize $10 billion worth of assets, which could enhance institutional confidence in SOL despite current challenges.

The cryptocurrency market is grappling with renewed downward pressure as Solana (SOL) drops below its consistent $177 trading window, mirroring broader worries about the global economic environment. This decrease is aligned with soaring geopolitical concerns that have unsettled financial markets across the globe, prompting investors to scrutinize their risk exposure in digital assets.

Despite this decline, Solana’s ecosystem is experiencing growth thanks to R3’s strategic initiative to integrate with its blockchain, showcasing increasing institutional enthusiasm for the platform’s potential to tokenize real-world assets.

Technical Analysis Highlights:

SOL price diminished from a steady $177 level to secure support at $170.41, amounting to a 4.5% decline.
A notable spike in volume reaching 1.26 million occurred around midnight when prices dipped below $172.
Support thresholds set between $170.67-$171.66 have remained intact so far.
Price movements attempted a revival towards the $174 mark but confronted resistance.
In the prior hour, SOL retreated from $172.93 to $172.00.
A major downturn took place at 08:00, dipping briefly to $171.92 before stabilization.
Volume surged to 29,372 units during this moment, indicating strong selling pressure from institutional traders.
Temporary support emerged around the $171.80-$171.85 range at 07:30-07:31.
A local high of $172.35 was recorded at 07:36 during the recovery effort.
Price continues to consolidate near the $172 support range.

External References:

“Solana (SOL) Price Shows Bullish Momentum, Analysts Anticipate Major Breakout Beyond $250” - Coin Edition, published May 23, 2025.
“Can Solana Break the $180 Resistance? What SOL Price Might Be Worth in 2025!” - CoinPedia, published May 24, 2025.
“Solana MACD Moving Up – Is This a Prelude to a Breakout?” - NewsBTC, published May 24, 2025.