TL;DR
- SOL Under Pressure: Price has dropped 8% to $115 amid tariff-induced market jitters, with analysts warning that a fall below the key support zone ($109–$111) could push Solana beneath $100, contributing to its 39.3% YTD decline.
- Weak Technical Signals: Indicators such as a sell-signal RSI and a negative MACD, along with a sharp drop in on-chain activity (daily addresses went down from 7.8M to 4.1M), point to mounting bearish sentiment.
- Institutional Optimism: Despite the downturn, Fidelity’s filing for a spot Solana ETF highlights ongoing institutional interest, leveraging SOL’s robust $2B daily liquidity to potentially boost mainstream adoption.
Solana (SOL) has endured a turbulent week, with its price slipping 8% to $115 following U.S. President Donald Trump’s announcement of new tariffs. The broader crypto market also suffered, with Bitcoin and Ethereum declining over 4%, reflecting heightened investor uncertainty.
TECHNICAL ANALYSIS ON SOLANA.
If the price closes lower than this box (huge support level) on a weekly,
I will sell the rest of SOL I have, from the moment I sold 70% at ATH.
Because then would be so bad, lower than you think.
I bought SOL in a bear market, below $100. pic.twitter.com/ZAgeWSWfsZ— debar.sol (@debar_fx) April 3, 2025
A prominent technical analyst on X has sounded the alarm, warning that if Solana breaks below a key support zone, they will sell the remainder of their holdings. This statement has fueled bearish sentiment among traders, many of whom are already grappling with Solana’s 39.3% year-to-date decline.
Technical Indicators Flash Red
Solana is now at a key support level between $109 and $111, which has proven to be a solid base over the last 10 months. Past recoveries from this range have resulted in notable price increases, making it an important area for traders to monitor.
Technical indicators indicate ongoing weakness. The Relative Strength Index (RSI) is showing a sell signal, and the MACD histogram has gone negative for the first time since March 13. Should SOL fall below this support level, analysts expect a sharper drop toward the $100 level.
Adding to these concerns, on-chain activity has dropped significantly. Daily active addresses (DAA) have fallen from 7.8 million in December to 4.1 million, while daily transactions (DT) have slipped from 113 million to 87.5 million. The downturn in the meme coin market has contributed to this decline, impacting Solana’s previously surging network activity.
Fidelity’s ETF Filing Offers a Glimmer of Hope
Despite Solana’s price struggles, institutional interest remains strong. Fidelity has officially filed for a spot Solana ETF, which, if approved, could mark a major milestone for SOL’s mainstream adoption. The ETF, set to be listed on the Cboe BZX Exchange, aims to hold actual SOL tokens and will engage third-party staking services to enhance returns.
Fidelity claims that Solana’s daily liquidity and trading volume, which average $2 billion and have a fully diluted market cap of $90 billion, make it a strong candidate for an ETF. The SEC’s recognition of the filing marks the beginning of the review process, allowing for public feedback.
