Solana Price Faces Increased Downside Risk After Falling Below Major Support Level

Solana's price has entered a high-risk zone after falling below a major support level that had held since February. According to data from crypto market trackers, the token's price traded near $73 on June 4 after losing more than 12% over the past week.

The decline arrived as derivatives traders unwound heavily leveraged bullish positions, with over $3.8 million in SOL long positions being liquidated within hours. This was part of a broader crypto market rout that erased roughly $1.8 billion in leveraged positions after Bitcoin fell below the $66,000 threshold.

Meanwhile, risk sentiment deteriorated across financial markets following renewed geopolitical tensions in the Middle East. Higher oil prices and growing concerns over prolonged regional instability pushed investors toward safer assets, adding pressure to cryptocurrencies and other risk-sensitive markets.