Solana posts 8 straight red months as $50-$80 accumulation zone emerges

Solana has recorded eight consecutive monthly losses for the first time in its history, a pattern that preceded a major recovery in the previous cycle.

Solana posted its eighth straight monthly decline in May, falling to around $79.50 as network activity contracted and derivatives open interest shrank, marking the longest losing streak since the token launched on mainnet in 2020.

"SOL has now posted eight consecutive red monthly candles, marking the first time such a streak has occurred since the cryptocurrency was launched," Crypto Patel, a market analyst, said on X. He drew comparisons to the 2021 bear market, when Solana fell from $260 to about $8 over nine red monthly candles — though those were not consecutive. The ninth candle marked the cycle bottom, after which SOL rallied to a new all-time high near $295 over the following two years.

Network participants on Solana fell to about 1.9 million from roughly 3 million at the start of 2025, according to on-chain data. Decentralized exchange volumes on the chain dropped from multi-billion dollar daily levels, while open interest on Solana derivatives declined to approximately $2.1 billion from peaks near $3 billion, Coinglass data shows. Funding rates remained positive, indicating traders continue holding long positions despite the deteriorating fundamentals. The current decline has taken SOL from roughly $253 to $67 at its low, with the ninth monthly candle now forming.

The $50-$80 range could represent a macro accumulation zone if the previous cycle's pattern repeats, Patel said, with a potential rally to $500-$1,000 over the next one to two years. On the four-hour timeframe, Elliott Waves Academy identified an ending diagonal pattern that suggests Solana is nearing the conclusion of its immediate downward trajectory. A clean breakout above the pattern's upper boundary would confirm the start of an upward corrective wave.

On-chain and derivatives data paint a mixed picture

Despite the bearish price action, Solana topped all blockchain networks in May application revenue, according to data from DeFiLlama. The network generated more revenue than Ethereum, BNB Chain, and other competing L1s during the month, underscoring the gap between on-chain economic activity and token price performance.

Short liquidation data from Coinglass shows concentrated positions stacked between $83 and $87. If SOL advances into that territory, forced buybacks could accelerate price appreciation rapidly. The primary downside level remains $76, while a break below $68.02 would invalidate the current bullish technical setup, according to analyst Man of Bitcoin.

Solana's 8-month losing streak places the token at a historically significant technical juncture. The previous cycle's pattern — a prolonged drawdown followed by a multi-year recovery to new highs — offers a template, though the current setup differs in both magnitude and duration. Whether the ninth monthly candle marks a repeat of 2021's cycle bottom or signals further downside depends on whether on-chain activity can stabilize and reverse the decline in network participation.

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