Solana open interest drops 30% as altcoins slump, SOL nears $68

Solana's futures open interest has dropped 30% in May, signaling a sharp reduction in leveraged positions as altcoins broadly slumped. The decline in open interest comes as SOL price weakened near $80, with traders cutting exposure amid bearish sentiment. This reduction mirrors patterns seen in past crypto cycles, where open interest drawdowns often coincide with the post-halving period, as miners adjust to reduced block rewards and speculative leverage unwinds. The 30% drop is among the steepest monthly declines since the 2022 bear market, reflecting a broader risk-off shift in altcoin markets.

For cryptocurrency traders, the drop in open interest combined with increased spot buying and ETF inflows near the lower end of Solana's price range suggests a divergence between leveraged speculators and longer-term holders. Historically, such divergences can precede either a capitulation or a reversal, depending on broader market conditions. Notably, Solana's exchange reserves have been declining, indicating that coins are moving off exchanges into cold storage—a pattern often associated with accumulation. Meanwhile, Bitcoin dominance has risen above 55%, pressuring altcoins as capital rotates into BTC. The US Treasury yield curve steepening and DXY strength have also dampened risk appetite, with higher real yields reducing demand for speculative assets like SOL. NowPrice's real-time crypto quotes show SOL currently trading near $80, with the next major support around $68—a level that aligns with the miner break-even cost for some operations and a key on-chain whale concentration zone.

Looking ahead, traders will watch whether SOL can hold above the $68 level, which represents a key psychological and technical support. A break below could accelerate selling, while a bounce from current levels with rising spot volume might signal a short-term bottom. The broader altcoin market direction and Bitcoin dominance trends will also influence Solana's next move. Additionally, ETF flow dynamics will be critical: sustained inflows into spot Solana ETFs could provide a floor, while outflows might exacerbate the decline. On-chain data shows whale wallets have been accumulating near $70, suggesting that large holders view the current price as a discount. However, if BTC dominance continues to climb and DXY remains elevated, SOL could test the $68 support, with a potential retest of the 2023 lows if macro headwinds intensify.