4-4-2025 – Solana (SOL) has witnessed a substantial decline, recording an 11.68% drop to $115.21, accompanied by robust trading activity totalling $6.58 billion over 24 hours. This downturn has pushed the cryptocurrency to its lowest point in several weeks, particularly following the ripple effects of Trump’s tariff announcement.
Market analysts note that investor confidence in Solana’s blockchain infrastructure has notably diminished, contributing to a broader sell-off that has seen the digital asset shed approximately 20% of its value over the past month. This decline stems from a combination of lacklustre bullish momentum, deteriorating on-chain metrics, and various external market pressures.
Technical analysis signals potential further decline
The cryptocurrency’s technical indicators paint a concerning picture for short-term price action. Having breached the critical $127 support level after several unsuccessful attempts to maintain it, SOL is currently testing lower price ranges, touching a three-week nadir of $112.48.
Technical analysis tools reveal bearish signals, with the Moving Average Convergence Divergence (MACD) displaying an expanding red histogram in daily timeframes. The bearish convergence between the 14-day and 26-day Exponential Moving Averages (EMA) suggests continued downward pressure may persist throughout the week.
Further technical analysis reveals the Cross EMA 50/200-day maintaining a consistent downward trajectory, casting a shadow over the near-term prospects of the fourth-largest alternative cryptocurrency by market capitalisation.
Price outlook and key levels to watch
Market observers suggest that sustained bearish sentiment could drive SOL to test crucial support at $110 in the immediate term. Should negative market dynamics intensify, the psychological $100 threshold could come into focus as a potential target.
However, the possibility of a bullish reversal remains, with $127 representing a key resistance level to monitor. A sustained break above this threshold could potentially pave the way for an advance towards $145 within the current month, though market sentiment would need to shift significantly for such a move to materialise.