Solana (SOL), once a high-flyer among altcoins, has taken a brutal hit this week, plunging below the psychologically crucial $100 mark as global markets reel from escalating trade tensions and investor panic.
Solana (SOL), once a high-flyer among altcoins, has taken a brutal hit this week, plunging below the psychologically crucial $100 mark as global markets reel from escalating trade tensions and investor panic.
The digital asset touched an intraday low of $96.99 on Monday, before recovering slightly to $106.25, still down over 7% in 24 hours and more than 22% in the past month.
The latest sell-off was ignited by former President Donald Trump’s sweeping “Liberation Day” tariffs, which slapped new trade barriers on countries like China, Canada, and Mexico.
Designed to reassert US economic dominance, the tariffs instead sent shockwaves through equities, commodities, and cryptocurrencies – especially risky assets like Solana (SOL).
SOL saw more than $62 million in long positions liquidated in just 24 hours, the second-largest wipeout among altcoins, per CoinGlass data.
At the same time, trading volume spiked 300% to $6.79 billion, signaling panic-driven exits across retail and institutional investors alike.
Solana (SOL) Price Analysis: A Drop to $50?
Solana (SOL) is currently trading at $109, according to CoinMarketCap, after breaching several key support levels – $112, $105, and the psychologically important $100 mark.
Unless SOL can reclaim and hold above the $100 level, analysts caution that the path of least resistance points downward, with potential declines toward $92, $84, or even as low as $50 if selling pressure intensifies.
As shown in the chart below, SOL is hovering just above a major support band. If this zone holds, a relief bounce toward the resistance zone (marked in red) is likely.
However, a breakdown from this region could open the door to significantly lower prices, with $50 emerging as a potential long-term target.
Source: TradingView
The Relative Strength Index (RSI) reads a value of 37.55 which means that the bears are overall in control of the digital asset’s price action while the gradient of the line indicates that lower prices could follow in the near future.
Meanwhile, the MACD indicator shows that the MACD line (blue) remains below the signal line (orange) which suggests that bears dominate the SOL price trajectory.
The histogram also remains red, suggesting significant chances of lower prices.
As Solana struggles to regain its footing, a new project built on the same ecosystem is gaining serious traction.
Solana Sinks, But This Layer-2 Project Just Raised $29M
Solaxy (SOLX), the first-ever Layer-2 solution built on Solana, has emerged as a major contender in the blockchain space by tackling the network’s congestion issues head-on.
Source: Solaxy
Offering faster transactions, lower fees, and instant bridging with Solana, Solaxy is positioning itself as a go-to platform for meme coins – one of the biggest drivers of Solana’s on-chain activity.
With plans to expand cross-chain compatibility, its vision stretches beyond the Solana ecosystem.
The project has already raised $29.4 million, gathered over 73,000 followers on X, and looks poised for a strong listing in the coming weeks.
With just one day remaining before the next presale price hike, investors can still secure SOLX at $0.001688 by visiting Solaxy’s official website and connecting a supported wallet like Best Wallet.
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