The price of Solana has encountered a standstill this week after its recent uptrend met a significant resistance at $146.9.
Solana (SOL), currently the sixth-largest cryptocurrency, was trading at $140 on Thursday, reflecting a drop of more than 50% from its peak earlier this year.
This latest surge came to an abrupt halt following Donald Trump’s unexpected announcement of broad tariffs aimed at the automotive industry. These tariffs raised alarm among market participants due to their extensive reach and possible economic repercussions.
Certain analysts warn that his forthcoming Liberation Day tariffs could push the US into recession, which sheds light on the recent downturn in Bitcoin (BTC), altcoins, and the stock market on Thursday.
In recent months, Solana has grappled with persistent challenges as worries about its wider ecosystem continue. A number of meme coins associated with Solana have plummeted, primarily due to insider withdrawals, leaving retail investors in a precarious position.
This collapse of meme coins has adversely affected Solana’s decentralized exchange (DeX) ecosystem and its network fees. Data from DeFi Llama indicates that Solana’s DeX platforms processed over $8.7 billion in assets during the past week, which is significantly lower than what Ethereum and BSC Chain managed.
On a brighter note, there are indications that some meme coins are making a comeback. Bonk has experienced a 20% increase over the last week, while Fartcoin, Popcat, Cat in a Dog’s World, Gigachad, and Book of Meme have all risen by over 10% in the same timeframe.
Technical Analysis of Solana Price
The daily chart illustrates that SOL remains vulnerable to a more pronounced bearish decline. On February 25, the token exhibited a death cross pattern—when the 50-day and 200-day moving averages intersected—considered a classic bearish indicator.
More recently, SOL has developed a bearish flag pattern, characterized by a sharp vertical drop followed by a consolidation phase. This flag section has been forming over the last two weeks.
Should Solana fall below the crucial support level at $120, which has been tested numerous times since last April, a new target could be $100, translating to a 30% decline from current levels.
Conversely, this bearish outlook would be negated if the token manages to break above the resistance level at $170, the lowest swing point observed on January 25.