Solana Futures Plunge 30%—Spot Demand Offers Stability Amid Decline
By John Nada·May 28, 2026·3 min read
Solana futures drop 30% in May amid reduced leverage; spot demand offers stability, with $113M ETF inflows.
On May 28, Solana (SOL) futures saw a significant drop to $1.90 billion in open interest, plummeting 30% from $2.75 billion earlier in the month, signaling a notable contraction in leveraged positions. The decline occurred as funding rates stayed near neutral, suggesting a shift in investor sentiment, according to Cointelegraph.
This sharp decline in open interest highlights a broader trend of traders reducing leveraged exposure across all exchanges. The contraction in open interest is accompanied by the aggregated funding rate for Solana futures, which held near -0.005. This indicates a balance between long and short positions, as traders have not engaged in aggressive directional bets despite the recent price slide to $80.
Interestingly, while futures markets have faced sell-side pressure, as evidenced by the aggregated futures volume cumulative volume delta (CVD) falling to a yearly low of -$13 billion, the spot market activity presents a steadier picture. The CVD tracks whether buyers or sellers are more active over time, and the decline in this metric signals stronger sell-side pressure in futures markets throughout May.
However, spot cumulative volume delta improved to $350 million, indicating that buyers are still absorbing supply in spot markets. This steady absorption in the spot market is further supported by positive flows into Solana exchange-traded funds (ETFs), with net inflows reaching $113 million in May. This figure marks the strongest monthly total for SOL ETFs in 2026, underscoring robust investor interest in spot markets.
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The divergence between futures selling and spot accumulation suggests a waning speculative appetite rather than panic selling. Leveraged traders seem to be reducing risk exposure, while spot buyers continue to gradually add positions. This pattern may indicate a more cautious approach among investors who are wary of further downside risks but remain interested in accumulating SOL.
From a technical standpoint, SOL has been hovering between $80 and $95 after a notable 42% drop during Q1. The price recently touched the lower end of this range, focusing attention on a potential retest of the yearly low near $68. Liquidation heat maps highlight more than $800 million in long leverage around the $68 zone, priming it as a critical liquidity pocket if downward pressure persists.
Crypto traders, like Cold Blooded Shiller, describe SOL as lacking strong support below $80, labeling it one of the weaker large-cap charts. The trader has noted SOL's downtrend since October, reflecting broader market challenges. Meanwhile, commentator Zoe has placed bids around $67, aligning with the largest cluster of leveraged liquidations, keeping the market on edge as traders anticipate the next move.
The lack of strong support below $80 is a critical concern for traders, as it places emphasis on the $68 zone, a level that could see significant liquidation activity if tested. This technical setup, combined with the ongoing reduction in leveraged positions, suggests that SOL might experience further volatility in the near term.