Solana Memecoin Market Forecast: Mixed Signals as Traders Wait for Direction

The week just passed in the Solana memecoin market was quite the tumult.

Between May 26 and May 31, large, experienced traders and institutional accounts (identified by our on-chain tools as ‘smart money’) were predominantly selling across the Solana memecoin space. Smart money made its most aggressive exit on May 31, with nearly 6.5 million dollars in net outflows from the Solana memecoin space, registering what seems to be a pretty significant shift in sentiment by our on-chain analysis.

The selling wave occurred simultaneously with a larger risk-off atmosphere in the cryptocurrency market, especially in speculative parts like memecoins reacting to sentiment and liquidity changes. For days, the sell-off pushed prices lower, and it seemed to have reached Solana-based meme tokens the same as any other assets. We were quite a ways off from the hot levels of a few days earlier.

Despite the observed trend of heavy selling, things started to turn around on June 1, when strong buying came back into the market. Trading volume shot up, following a volatile day prior, and more significantly, cash was seen flooding back into the space and at a price level that this cohort of sellers had recently appeared to be unwilling to go below. Hopes were then raised—not without some skepticism that this was just a slight reprieve in a longer-term downward trajectory—that we might be seeing a short-term bounce, or maybe even a potential pattern shift back to something resembling a bull market.

Solana Memecoin Market Forecast – Today’s Outlook (June 2)

From May 26 to 31, big wallets (smart money) were mostly selling memecoins. The biggest dump happened on May 31 with nearly -$6.5M in net sells.

But on June 1, things flipped, we saw strong buying and a big spike in… pic.twitter.com/GCHqgRvCeO

— Stalkchain (@StalkHQ) June 2, 2025

June 2: Calm Returns, But Uncertainty Lingers

At present, on June 2, the memecoin market seems to be settling into a holding pattern. Instead of the lively trading we had seen over the previous days, that now appears to have slowed considerably, with quite a few memecoins not showing much in the way of price movement. Volume has definitely diminished, and while there’s still some selling that’s taking place, the buying has only slightly increased to outpace it. This very minor net selling, along with the declining volume, suggests to me that traders are in a somewhat cautious mood.

Such a trading range often occurs when there’s indecision in the market. A market that has been volatile for a number of days or weeks and doesn’t seem to have a clear trend can cause a lot of participants to hesitate. They might be waiting to see if the market makes a clear breakout up or down before they put more of their money to work.

In this case, indecision is creating a market that is hard to read. The sharp difference in the action of the market on May 31 and June 1 has created a tension that seems to be underlying the market right now.

For players that are in it for the short term, the next move in one direction or another may depend on one main thing: trading volume. Without new money coming in and a fresh push in a certain direction, the odds seem to favor a period of sideways price action or maybe a small dip as the market, you know, digests the volatility from last week.

Forecast: Sideways Drift or Short-Term Pump?

In the next 24 to 48 hours, the amount of trading volume in the memecoin market on Solana could push the market in one of two directions.

Should the prevailing low-volume conditions continue, it is probable that we will soon see the market move sideways or experience a modest downward correction. After all, we have just witnessed some very heavy and very smart part of the market being sold. And we also saw a very rapid rebound just a day later. If the market moves quietly for a spell, it could allow for some kind of stabilization and resetting of expectations ahead of whatever is to come next.

Yet, if buyers return with vigor, especially accompanied by stronger trading volume, another short-term pump is not impossible. The spike on June 1 showed that even after the market had experienced a significant amount of selling, there was still interest as well as capital just waiting to come back into the memecoin market, either when the overall sentiment improves or when the prices become just too attractive to pass up.

In the end, Solana memecoin market is hanging by a thread.

After a sharp downward move, traders are trying to make sense of the current situation. Sales and buy orders driven by fear have created a very unusual market environment. This environment is now even more unusual as the market has recently calmed down following the dramatic sequence of selling and buying. Traders have two questions: Where is the market heading next? And what is the cause of the current calm? Calmer market participants seem to be giving the market a bit more time before suspecting it has entered the next phase. Can calms like this one produce higher prices again? Or are we drifting lower? For now, we are being asked to observe carefully.