This week, the Solana memecoin market has experienced a sell-off that has left many tokens gasping for support. For a few days, it seemed that the market was going to fall apart.
But on June 5, there are some signs of life, as the smart money appears to be done with its sell-off and new buying seems to be everywhere. A few different Solana-based memecoins seem to have found a bottom and are recovering. The same may soon be true for a few others that weren’t mentioned.
The last few days have brought several steep drops as influential wallets have taken profits and moved to safer assets. But now, if only very tentatively, things may be starting to turn back around. Profits may be taken in the form of Bitcoin dips, but some wallet moves that have recently dialed down volatility could now be dialing it back up.
June 3 and 4: A Period of Heavy Unloading
From a shaky start for Solana-based memecoins, the week progressed a bit more favorably for them. Namely, on June 3 and 4, the memecoin market experienced two intense days of selling, with around $6 million worth of tokens dumped each day by what best could be described as “smart money” wallets. These wallets do not tend to make trades on a whim. But when moves like this are made, one is left to believe it is a combination of waning sentiment paired with a not-so-positive macro landscape that instigates such actions.
Solana Memecoin Market Forecast – Today’s Outlook (June 5)
Over the last few days, we’ve seen heavy sell pressure, especially on June 3 and 4, where smart money sold over $6M+ worth of memecoins each day. That’s a strong sign of profit-taking or risk-off moves.
But today looks… pic.twitter.com/bjkJGQ1A6Z
— Stalkchain (@StalkHQ) June 5, 2025
When large holders exit positions, it can create a kind of vacuum that sucks in the smaller traders—those who rarely have the true kind of confidence that sees one through all market conditions. This is when we get the market-wide cooldown, the appearance of which I have referred to above.
This sell-off was not random—it was when the overall crypto market was experiencing lower liquidity and some short-term indecision. The memecoins, often the most unstable assets in the ecosystem, were the first to show that risk appetite had cooled.
June 5: Momentum Begins to Shift
Yet today tells a story that’s a bit different. From June 5, volumes of selling have noticeably decreased. Smart-money wallets that were selling so aggressively have now calmed a bit, and we are seeing far fewer large-scale sales right out of the gate every morning. More importantly, some of these wallets have started showing signs of renewed accumulation, too—though I think we can say that this renewed activity is happening on a less-than-panic basis.
At the moment, the capital inflow is not all that substantial; yet, the turnaround in buying behavior is sufficient to shift the overall market mood from clear bearishness to something resembling neutrality. If buying continues apace through the rest of the day, we could have the makings of a short-term bump up in prices or, possibly, the start of a longer-term advance.
Volumes are what traders and analysts are watching now. Should buy-side activity cross the $2 million mark today, it might serve as a psychological turning point for participants sitting on the fence. A volume jump that coincides with waning sell-side pressure often heralds a market that’s shifting its momentum—never more so than in the case of memecoins, where the momentum change can happen at lightning speed.
What to Watch: Relief Rally or New Bullish Wave?
The memecoin marketplace on Solana has always been known for very fast shifts, shifts that are dictated largely by sentiment and speculative flows. What we are looking at now is possibly setting up as a classic relief bounce—a temporary rally, if you will, fundamentally fueled by the covering of shorts and the purchasing of previously discounted assets. Of course, this is just one possible narrative. Much depends on what buying pressure looks like in the next few days.
The playbook for traders remains focused on volume confirmation. A steady increase in buy-side activity that breaks above the $2 million mark will likely serve as a green light for traders to be more risk-on. In this case, the quick flips to bullish momentum we have seen in recent weeks could become a more regular occurrence, with lower-cap memecoins that tend to react more sharply to shifts in sentiment taking the lead.
Also, the way in which the wallets of the smart money behave will remain under the microscope. Accumulation from these wallets would reinforce the notion that the worst of the selling is behind us. Conversely, an increase in the kind of aggressive dumping that characterizes a return to the market melt has us right to be cautious. If we’re not cautious, we’ll be sorry.
To summarize, the Solana memecoin market started the week on shaky ground but appears, early today, to be shifting toward something we might call a “positive pivot.” The sell pressure is going away, and strategic buyers seem to be coming back. The market is not quite saying this yet, but it may be trying to shift from the state it was in to a state that is more favorable. \n\nSo, will this continued phase of apparent positivity in the Solana memecoin market culminate in a relief rally or more sustained upward movement? It is still too early to say, but a few factors could be looked at to help give us some clearer signs.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
No Comments