- Solana has now tumbled underneath the critical $100 support level along with the rest of the crypto market.
- Solana’s latest downturn stems from rising trade tensions between the US and other nations.
- Analysts Jason Pizzino and Ali Martinez predict Solana could plunge below $90 this week.
Solana has now tumbled underneath the critical $100 support level along with the rest of the crypto market in the Sunday-Monday slump. This move has sparked fresh concerns across the crypto space about the network’s future in the short term.
Over the last 24 hours, this cryptocurrency dropped by double digits and touched the $96 zone before rebounding slightly. So far, this now marks a 14-month low for the cryptocurrency. Tens of millions in leveraged positions have now been wiped out as it stands. However, while retail investors remain gripped with fear, institutions seem to be betting on a revival.
Global Trade Tensions and Market Uncertainty
The latest downturn on Solana comes against a wider trend in the global market. Trade tensions between the US and other countries are escalating, especially after the new wave of tariffs introduced by President Donald Trump. Investors are fleeing riskier assets, and SOL, like most other cryptocurrencies, is feeling the heat.
To start with, data from CoinmarketCap shows an ongoing surge in Solana’s trading volume, with a 230% spike to more than $6 billion in a single day. However, this move wasn’t due to buying interest. Instead, the spike in trading volume comes from investors panicking and de-risking their portfolios. This trend is confirmed by Coinglass data, which shows that SOL posted the second-highest liquidation figures among altcoins.
According to the snapshot above, more than $70 million has been wiped out of the Solana market in just 24 hours.
A Drop in On-Chain Activity Deepens the Slump
More than the price entering a free-fall, a recent update from asset management firm VanEck shows a major decline in Solana’s on-chain metrics. The report from this firm shows sharp declines on Solana across several major indicators.
These include a 66% drop in average transaction fees, a 34% drop in stablecoin transfer volume, along with a 53% crash in DEX trading activity. This is especially concerning, with Solana having overtaken Ethereum in DEX market share in early 2025.
Solana’s market share has now fallen to its lowest point since October 2024. Much of this hype has been tied to the waning hype around memecoins, which helped its initial jump above the $200 mark earlier in the year.
Earlier on in the year, memecoin volumes on Solana peaked at around $12 billion daily. This figure has crashed strongly by more than 90% to a low of $720 million. Interestingly, despite this drop, memecoins still accounted for 92% of Solana’s DEX volume in March, aside from SOL and stablecoins. The bottom line of all of the above is that Solana is still heavily reliant on speculative trading.
Is a Crash Below $90 Coming?
Despite the hopes from certain investors that the pain might be over, analysts warn that the worst may not be over. Top analyst Jason Pizzino believes SOL could plunge below $90 this week. He recently pointed out that SOL is in the middle of a major correction, similar to what we have seen with other altcoins.
If Solana breaks below the $90 zone, he sees the $80 mark as the next major support level, before $60 if this level fails to hold as well. This would mean that Solana is eyeing an 80% drop from its mid-January highs.
The above outlook is supported by top analyst Ali Martinez, who sees Solana hitting a new low of around $58 soon. Overall, whether SOL bounces back in the coming weeks or slips further below $90 will depend heavily on market sentiment, as well as the Trump tariff outlook. For now, Solana investors are playing a waiting game.
