Solana’s SOL Falls Below Key $160 Support Amid Market Uncertainty and Slumping Network Activity
Solana’s native token SOL dropped over 5% in the last 24 hours, pressured by rising geopolitical tensions and a sharp decline in memecoin trading on its network. The price fell from $163.72 to a low of $154.99 as broader market worries and diminishing network revenue weighed heavily on investor sentiment.
This sell-off aligns with a wider crypto market correction sparked by the U.S. Court of International Trade’s decision to reverse Trump’s tariff suspension, reigniting fears around global trade and unsettling markets. Additionally, revenue from memecoin transactions on platforms like Pump.fun—a significant driver of Solana’s network activity—has plunged since early April, further dampening growth prospects.
Ecosystem Developments
On Friday, Solana Labs launched the Solana AppKit, an open-source React Native toolkit designed to help developers build iOS and Android apps on the Solana blockchain quickly—within about 15 minutes. The toolkit includes integrations with over 18 protocols and features embedded wallets powered by providers such as Privy, Dynamic, and Turnkey. It supports Solana Mobile’s Wallet Adapter and includes direct swap and copy trading functionalities via Jupiter Exchange, as well as integrations from Raydium and Pump.fun. The goal is to enhance app capabilities and increase user engagement within the Solana ecosystem.
Price and Technical Overview
Technically, SOL has formed a double-top pattern near $184.50, breaking through crucial Fibonacci support levels. The SOL/ETH trading pair also plunged below a rising wedge formation, signaling a possible 40% downside relative to Ethereum if Solana’s network activity fails to recover.
Analysts at Standard Chartered issued a cautionary note, warning that Solana’s price may continue to underperform unless the project diversifies beyond memecoin-driven volume. Meanwhile, rising long liquidations add to the bearish pressure.
Despite these challenges, some traders remain cautiously optimistic. SOL remains within a broader bullish structure as long as it holds the $150-$160 support range. Maintaining support in this zone could set the stage for a rebound toward $200, while failure to do so might push the price toward lower support levels.
Technical Summary
- SOL declined 5.33% over 24 hours, falling from $163.72 to $154.99.
- Price volatility increased, with an $11.87 trading range (7.24%).
- Heavy sell-off at $161.84 resistance accompanied by above-average volume (2.52M).
- Support formed at $152.37 with strong buying volume (1.81M).
- The pattern of lower highs and lows signals ongoing bearish momentum.
- Recovery attempts remain limited; reclaiming $157 is crucial for short-term upside.
- A local low of $154.37 formed early morning, followed by a modest bounce to $155.36.
- Peak buying activity occurred at 07:54, with volume spiking to 10,295 units.
- The price ended near $154.97, suggesting a tentative short-term support zone.
As traders assess Solana’s outlook, the focus will be on whether SOL can hold above critical support levels or if bearish forces will push it further down.
