Solana, one of the most promising layer-1 blockchains, has taken a heavy hit in June. After a strong start to 2025, SOL’s price has dropped more than 25% since May, slipping to a two-month low of $140. The decline is largely driven by chaos in the meme coin market, along with falling DeFi and stablecoin activity on the Solana network.
But despite the drop, chart patterns suggest that a potential recovery may be on the horizon.
Meme Coin Meltdown Hits Solana Hard
Solana’s recent losses are tied to the collapse of meme coins built on its ecosystem. According to CoinGecko, Solana-based meme coins lost billions in market value over the last few weeks. In May, they were worth around $15 billion — already down from $30B in January — and now they’ve plunged to just over $9 billion.
Coins like Fartcoin (-25%), Popcat (-6.9%), and Gigachad (over -20%) have all suffered double-digit losses in the past seven days, dragging the broader Solana ecosystem down with them.
DeFi and Stablecoin Transactions Plunge
Data from DeFi Llama shows that Solana’s decentralized finance (DeFi) activity has fallen sharply. DEX transaction volumes dropped from $97 billion in May to just $46 billion in June, a dramatic 52% decline. In January, that number stood at $262 billion, underscoring the size of the slide.
It’s not just DeFi — stablecoin usage on Solana is also shrinking. Artemis data shows that stablecoin transaction volumes are down 68% month-over-month, dropping to $179.5 billion. Meanwhile, the number of unique stablecoin addresses fell 20%, and transactions declined by 37%, indicating a slowdown in on-chain activity.
Can Solana Bounce Back? Chart Patterns Say Maybe
Despite the current weakness, technical analysis offers some hope for a comeback. The daily chart shows that SOL has formed a bullish flag pattern, a structure that often hints at a potential upward breakout.
However, the near-term outlook remains cautious. The 50-day and 100-day moving averages have formed a mini “death cross”, which could signal short-term bearish pressure. The Relative Strength Index (RSI) and MACD are also pointing lower, indicating that downside momentum still lingers.
The key level to watch is $156, which marks the top of the flag’s descending channel and coincides with the 100-day MA. A breakout above that resistance could confirm a trend reversal, putting Solana back on the path toward recovery.
Bottom Line
Solana’s current slump highlights how meme coin hype can quickly turn into a risk for layer-1 networks. But while on-chain metrics and technical indicators show short-term weakness, the bullish flag pattern suggests a potential recovery is still possible — especially if buyers step in and price regains key resistance levels.
Traders should watch the $156 mark closely. If SOL climbs above that, we might see renewed momentum. But until then, caution is advised.
