The memecoin market in Solana has been passing through some rough waters in the past week.
A consistent stream of outflows had ratcheted up some significant selling pressure, with smart money appearing to take us memecoin holders to the woodshed. From May 24 through May 29, some very influential wallets (likely not on any of our desired influence lists) were offloading, in a series of transactions that seemed to signal a request for us to step back and take some profits if we hadn’t already. But today, May 31, that trend seems at least temporarily reversed.
Following a period of being down in the dumps, the crypto market has seen a noticeable uptick in prices and sentiment. For that, we can thank an influx of smart money. Although we don’t know for sure who these latest buyers are, their just being in and around the market makes it feel like a better place.
Smart Money Dumped $10 Million in a Single Day
The strongest sign of risk-off behavior came on May 30, when smart money sold off more than $10 million of Solana-based memecoins. This was not a withdrawal in slow motion, but a fast-paced move that shook retail investors and added oomph to what was already a not-so-happy sell-off. The environment this created was one in which fear and skepticism reigned supreme, with not much in the way of speculation buoying things up.
Solana Memecoin Market Forecast – Today’s Outlook (May 31)
Smart money has been mostly selling memecoins over the past week, with consistent outflows from May 24 to May 29.
The biggest red flag came yesterday, when smart money dumped over $10M worth of memecoins, a strong… pic.twitter.com/osmR25Grsa
— Stalkchain (@StalkHQ) May 31, 2025
Analysts attribute the sales surge to the mix of profit-taking—especially after some memecoins had posted double-digit increases earlier in the month—and a broader de-risking strategy in the face of in-the-air macroeconomic headwinds or shifting sector sentiment. For traders who watch on-chain data, this trend was hard to miss. Smart money—often seen as a leading indicator—was retreating. By the end of the week, some were connecting the dots between these sales and broader on-chain analytics that suggested lower market liquidity and, consequently, a lower likelihood of sustained upward price movements.
This stream of outflows caused numerous Solana memecoins to experience price corrections in the short term, and with the retail trader now expressing concern over entering a liquid market that is in decline, the only thing that can happen next is a further thinning out of volume.
A Sudden Shift: Buying the Dip Begins
The tone started changing early today. On-chain data and trading behavior suggest that some of the same smart money entities that had sold off aggressively earlier in the week have started to accumulate once again. This could be an opportunistic shift—taking advantage of recent lows to re-enter positions at a discount. Or it could be an early sign of renewed confidence.
Despite the still modest total daily volume compared to past price surges, the smart money behavior of late stands in stark contrast to the selling seen for much of the summer. And while the behavior of Solana and its affiliated assets continues to baffle, this marked shift into the buying camp could herald a short-lived but much-needed rally across the Solana ecosystem.
Observers of the market should be wary, though. This rebound could just as easily prove to be a short-lived upswing—what traders call a “dead cat bounce”—instead of the start of a continued advance. If buying pressure fails to carry through or if profit-takers reemerge, today’s gains could vanish in a hurry.
Rally or Reversal? What to Watch Next
The upcoming 24 to 48 hours will be decisive in ascertaining if today’s recovery morphs into a larger rally or just dies out. Further inflows from the smart money, coupled with increasing volume and positive social sentiment, will make short-term bullishness look more and more like a done deal.
If buying stops, or if we see new sell-offs, short-term bearishness looks more like a done deal.
Whether retail traders or on-chain analysts, everyone is keeping a close watch on the activity of wallets, liquidity pools, and the specific metrics of memecoins that involve holders and transaction speed. The bounce, for now, is a good reason for hope. But it is a pretty weak basis for any kind of confidence.
Solana’s overall DeFi and NFT setups demonstrate continuing strength in some respects, even as its memecoin scene has successfully provided a space for laughter and levity in recent weeks.
The Solana memecoin market, which is largely a laughing matter, also remains highly dynamic and volatile, and so this space isn’t necessarily a safe haven as we consider that Solana’s value prop is clearly under fire right now.
Currently, the atmosphere has changed from one of panic to one of potential. Whether this potential turns into profits or more suffering will mostly be a function of outlining the bright side and covering the bases. It is also, in large part, about where the “smart” money goes next. Will it move in tandem or stay on the sideline?
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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