Solana Drops 17.6% as Meme Coins Lose Billions

Solana's latest price was $157.07, up 0.429% in the last 24 hours. Despite its reputation as a potential "Ethereum killer," Solana's momentum has slowed, with no significant updates or partnerships to reignite investor interest. This has led to a shift in focus towards other projects, such as Ruvi AI, which offers real-world utility and impressive presale success.

Solana's meme coins, which experienced a euphoric surge earlier this year, have begun to unravel. Once riding high with a combined market cap north of $15 billion, Solana's meme assets like Dogwifhat (WIF), SPX6900 (SPX), and Popcat (POPCAT) have shed billions in value in just days. This broader sell-off mirrors a risk-off shift in the crypto market, amplified by geopolitical tensions and technical breakdowns, casting doubt on how much steam is left in Solana's meme-fueled momentum.

Solana's meme coins have been some of the worst-affected, with their market capitalization falling from over $15 billion mid-month to $10 billion. Dogwifhat's price tumbled by 20% in the last 24 hours, while SPX6900 (SPX) fell by 18%. Other top Solana meme coins like Fartcoin (FARTCOIN), Pudgy Penguins, and Popcat have also tumbled by over 20% in the same period. The ongoing sell-off has also affected Solana's ecosystem, with the volume handled by protocols in its DEX ecosystem tumbling in the past few days.

Solana's correction has deepened, with the blockchain falling to a low of $153.90, down 17.6% from its highest level in May. If the sell-off continues, it may move into a technical correction. The broader sell-off mirrors a risk-off shift in the crypto market, amplified by geopolitical tensions and technical breakdowns, casting doubt on how much steam is left in Solana's meme-fueled momentum. The ongoing Solana meme coin sell-off has also affected its ecosystem, with the volume handled by protocols in its DEX ecosystem tumbling in the past few days.

Solana's net realized profit/loss has flipped red for the first time in almost two months, indicating that people are starting to sell at a loss. At $156, there are around $323 million in realized losses, meaning a chunk of buyers whose cost basis sits above the current spot value are capitulating or breaking even at best. Market patience is running out, and confidence in a bounce is pretty low. This kind of red flag usually shows up right before Solana's big capitulation moments, such as the early February sell-off when SOL dumped nearly 56% over two months, bottoming near $95 in early April.

Opportunistic shorts have taken the driver's seat in Solana's market, with longs getting squeezed hard, accounting for over 90% of total liquidations. However, when the market's stuck in neutral, neither bull nor bear, the setup for a short squeeze is wide open. On the 12-hour Binance SOL/USDT perpetual, a juicy liquidity cluster is cooking at $161.47, with $7.37 million in leveraged positions hanging by a thread. Trigger that, and bulls could rocket back in. However, to get there, the bulls will need a solid game plan — starting with holding support to prevent capitulation and spark fresh FOMO.

Solana's already dropped below $160, with $150 now in the crosshairs. If buyers step up here, a short squeeze could pump confidence fast. If not, watch out — Solana could dive into full capitulation, and bears will pounce hard. For now, SOL remains in a fragile spot — one wrong move could unleash a massive unwind. Despite the pullback, top analyst Ali Martinez believes Solana could still be poised for a rebound. In a recent analysis, Martinez pointed out that as long as SOL holds above the $159 support level, the asset maintains a structurally bullish outlook. This zone now serves as a key threshold for the bulls to defend in the short term. If Solana finds enough demand at these levels, it could set the stage for a sharp recovery and renewed attempts at breaking above $180. For now, the market remains tense, with traders watching closely.