Solana (SOL) experienced a decline of more than 5% over the past 24 hours, dropping from $163.72 to a low of $154.99. This downturn is attributed to a combination of geopolitical tensions and diminished memecoin activity on its network. The price plunge aligns with a wider correction in the cryptocurrency market, sparked by the U.S. Court of International Trade's reversal on a tariff suspension, raising trade concerns and unsettling investors. Notably, revenue from the previously active Pump.fun platform has sharply declined since early April, contributing to the downturn in network transactions.
On a technical front, SOL appears to be forming a double-top pattern, recently breaking below critical Fibonacci support levels. The SOL/ETH trading pair has also declined below a rising wedge, leading to warnings from some analysts of a potential 40% drop relative to Ethereum if network activity does not improve. Standard Chartered has suggested that Solana must diversify beyond memecoins to avoid further price declines. Increased long liquidations have added to the bearish pressure observed.
Despite these challenges, some market participants are cautiously optimistic, noting that SOL remains within a bullish framework as long as it can maintain the $150-$160 support range. Sustaining these levels could pave the way for a recovery target of $200, while failure to do so may lead to further losses into lower support areas.
Currently, SOL is down about 5.33% from $163.72 to $154.99, with volatility evident in its daily trading range of $11.87 (7.24%). A crucial resistance level was recorded at $161.84 amid significant sell-offs, with support emerging at $152.37 during high-volume buying. As traders determine the next steps for Solana, the focus will be on whether SOL can hold above these critical support levels or if the negative momentum will carry it lower.
On a technical front, SOL appears to be forming a double-top pattern, recently breaking below critical Fibonacci support levels. The SOL/ETH trading pair has also declined below a rising wedge, leading to warnings from some analysts of a potential 40% drop relative to Ethereum if network activity does not improve. Standard Chartered has suggested that Solana must diversify beyond memecoins to avoid further price declines. Increased long liquidations have added to the bearish pressure observed.
Despite these challenges, some market participants are cautiously optimistic, noting that SOL remains within a bullish framework as long as it can maintain the $150-$160 support range. Sustaining these levels could pave the way for a recovery target of $200, while failure to do so may lead to further losses into lower support areas.
Currently, SOL is down about 5.33% from $163.72 to $154.99, with volatility evident in its daily trading range of $11.87 (7.24%). A crucial resistance level was recorded at $161.84 amid significant sell-offs, with support emerging at $152.37 during high-volume buying. As traders determine the next steps for Solana, the focus will be on whether SOL can hold above these critical support levels or if the negative momentum will carry it lower.
