Key Points:
- Solana (SOL) experienced an 11.7% drop over the week and is currently priced at approximately $154.50 following a court ruling that reinstated Trump-era tariffs.
- Circle has issued $250 million in USDC on Solana, illustrating its significant role in the stablecoin sector, contributing to 34% of total stablecoin volume.
- SOL has broken below its critical support level of $165.94, marking a retreat from the bullish trend established since mid-April.
Market Sentiment
Solana continues to face pressure due to economic factors, particularly revived tariff concerns, which are shaking investor confidence. Currently, SOL is maintaining a price around $154.50, fluctuating narrowly between $152.33 and $158.06, reflecting a 3.76% price variation over the past 24 hours.
Despite previous signs of resilience, SOL dropped from $156.74 to $154.86 within an hour, breaching its established uptrend from mid-April. Recent derivatives data shows a decline in open interest for SOL futures by 2.47%, totaling $7.19 billion, with liquidations for long positions reaching $30.97 million.
Institutional interest remains strong, with Circle’s recent USDC minting on Solana providing liquidity and reinforcing the blockchain’s leadership in the stablecoin market. Furthermore, SOL Strategies is backing a $1 billion validator fund, potentially signaling enduring confidence in the protocol’s scalability, despite short-term price instability.
Technical Analysis Highlights
- SOL registered a 5.73-point trading range ($152.33–$158.06), indicating a 3.76% intraday fluctuation.
- Initial price trends showcased a solid ascending channel with strong support around $152.80, driven by significant accumulation.
- A session high of $158.06 was recorded during peak trading hours, suggesting prior bullish momentum. However, a reversal took place in the early morning, with rapid selling pressure observed during a brief period.
- The market shows a bearish momentum presently as both lower highs and decreased trading volume characterize recent trading patterns. As of now, SOL is stabilizing near $154.50, indicating potential for volatility in future trading sessions.
