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President Donald Trump’s recent decision to impose 25% tariffs on imports from Canada and Mexico, along with increasing tariffs on China to 20%, has led to threats of retaliation. These trade wars have caused billions of dollars in liquidation in the crypto market, sending leading altcoins like Solana to their yearly lowest prices. As a result, important on-chain metrics have sharply declined, increasing the likelihood that Solana’s price may remain stuck below the $100 mark.
Solana’s Active Address Count Declines
Solana’s price is facing a critical moment after falling below the important $100 support level, marking its lowest level since February 2024.
According to data from Coinglass, there have been significant liquidations of Solana positions in the past 24 hours, totaling about $86.3 million. Out of this, buyers liquidated $67.2 million in long positions, while sellers closed $19.1 million in short positions.
Adding to this selling pressure, more than $50 million worth of SOL tokens are scheduled to unlock this week. Meanwhile, the overall altcoin market is experiencing high fear levels, with the crypto fear and greed index now at 22.
On-chain activity has also been dropping recently. The number of active addresses on Solana decreased from a peak of 3.52 million to 2.99 million last week. Additionally, new addresses on the network fell from 3.51 million to 2.78 million. This decline in activity suggests weakening demand and interest, indicating sellers currently have the advantage.
Also read: Solana Back Above $100 as Bulls Gain Control—Will SOL Price Reclaim $110?
Aside from the recent sharp decline in Solana’s price, the protocol has also lost its position as the top decentralized exchange (DEX), falling behind Ethereum. This could negatively impact sentiment. However, there are positive moves worth noting, which might meet SOL buyers’ expectations.
One important factor is the push for a Solana ETF in the United States. Although the chances of approval aren’t as strong as those for Litecoin or Dogecoin ETFs, if approved, a Solana ETF would attract long-term support to the ecosystem.
What’s Next for SOL Price?
Solana (SOL) is currently facing a strong downward pressure as its price dropped sharply after failing to hold at $118. The price initially dropped below the crucial $100 level to form a low near $95. However, it later triggered a rebound and surged above $100. As of writing, SOL price trades at $106, declining over 1.53% in the last 24 hours.
Interestingly, buyers have shown interest to accumulate more SOL around the dip below $100, resulting in the recent rebound.
The Relative Strength Index (RSI) is at 39, indicating that the bearish momentum is strong. If buyers manage to rally and push the price up towards the crucial resistance of $110, SOL could potentially reach a resistance zone at $135-$160. Breaking past this point might restore market confidence and possibly lead to a rise towards $180.
Conversely, if SOL fails to stay above the $110 level, it could face a stronger decline, possibly falling to an important support level at around $100. A drop below this could trigger further losses, sending Solana below $80.
