Solana sinks to 52-week low as $1.66B liquidation wave hits altcoins

Solana fell to its lowest price since December 2023 on Thursday as a broader crypto deleveraging pushed total liquidations past $1.66 billion.

Solana slid to $66.60 intraday, its lowest since December 2023, as $1.66 billion in forced liquidations across crypto markets deepened the selloff in altcoins.

"Long traders absorbed 94 percent of the damage, with $83.53 million in SOL longs liquidated against just $4.91 million in shorts," Coinglass data showed as of 12:00 UTC on June 5.

The token traded at $67.80 as of 16:00 ET, down about 9 percent in 24 hours with a market cap near $39.6 billion. The move came as Bitcoin fell below $64,000, extending a week-long rout that has erased 13 percent from the largest cryptocurrency. US spot Bitcoin ETFs have logged a record 10-day outflow streak, shedding more than 40,000 BTC worth roughly $3 billion since May 20, according to Galaxy data.

Solana has now lost the 0.786 Fibonacci retracement at $73.31, turning former support into resistance. With network usage at roughly half its February peak and social interest near a three-month low, the path of least resistance points lower unless spot demand re-emerges.

The leverage flush did not happen in isolation. Solana's daily active addresses peaked near 5.5 million in early February, according to Santiment, and have since fallen to about 2.91 million — roughly half the February high. That divergence between price and on-chain activity had been building for months before the breakdown.

Social volume has followed a similar trajectory. The metric now sits at 39, near the bottom of its three-month range, while social dominance has rolled over to 0.687 percent after a brief bounce in mid-May was sold into. Each burst of chatter failed to put a floor under price, leaving little fresh demand to defend support levels.

Forward Industries adds to selling pressure

Adding to the bearish narrative, Forward Industries — the largest corporate Solana holder — deposited 455,784 SOL worth $31.87 million into Coinbase Prime on June 4, breaking a month of treasury inactivity. The company holds 6.83 million SOL purchased at an average entry near $232.08, a position now worth roughly $451 million — a paper loss of more than $1.1 billion. Exchange deposits often precede sales, though Forward has not confirmed any intent to sell.

The broader altcoin market faces similar headwinds. Bitcoin's dominance has risen as traders rotate out of riskier tokens, and the $1.66 billion in total liquidations across the past 24 hours — the largest single-day flush since February — suggests leveraged positions are still unwinding. With ETF outflows showing no sign of reversing and macro catalysts absent, the selling pressure that drove Solana to a 52-week low remains in place.

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