Solana holds near $154 after losing support as fears of tariffs shake up the markets. As of early June 2025, this term has become the most well-known headline for Solana (SOL) as the cryptocurrency faces more volatility and uncertainty. Once praised for its fast growth and strong ecosystem, the digital asset is now under a lot of strain, trading at $154 after losing a major support level. What caused it? A mix of macroeconomic problems, such the return of tariffs from the Trump period, and bearish momentum in the wider crypto market.
Understanding the recent drop
The drop in Solana’s value has been very clear and sharp. The token fell 11.7% in a week, going below its prior range and the important $165.94 support level. This move ended the bullish channel that had been in place since mid-April, which was a clear hint that market mood had changed. After the event, SOL traded in a narrow range of $152.33 to $158.06, with intraday fluctuations of around 4% showing that the market was more volatile.
The bigger picture is important: the return of U.S. tariffs has shaken up global markets, causing investors to act with caution. Digital assets like Solana, which are considered to be very sensitive to big economic changes, have been hit the worst. The court’s decision to bring back these tariffs added to the uncertainty, which caused a lot of people to sell and a lot of people to feel pessimistic.
Technical Analysis: Most Signals Are Bearish
Technical indicators support the negative story. The Relative Strength Index (RSI) has fallen below the midway point, going from being overbought to being neutral to bearish. Many people see this decline in the RSI as a sign that prices will go down much more, especially when it is moving away from the price movement. The Moving Average Convergence Divergence (MACD) indicator likewise shows that bullish momentum is fading. The gaps getting wider and the red histogram bars getting deeper imply that the trend is changing.
The breakdown of the $165.94 support is extremely severe. This level used to be a floor for Solana’s price, and it helped the price bounce back several times throughout its consolidation phase. The next important levels to watch are $141.60, $125.95, and $112.04, since this support is no longer there. These are places where buyers have stepped in in the past, but the current trend shows that prices could fall even more if mood doesn’t improve.
Market Sentiment and Derivatives
Data on derivatives gives us further information about how traders are feeling right now. The amount of open interest in SOL futures has declined by 2.47% to $7.19 billion, while the amount of long liquidations has risen to $30.97 million. This means that leveraged traders who were relying on a price rise have had to close their bets, which adds to the downward pressure. On the other hand, short liquidations are still low, which supports the downside bias and shows that not many people are prepared to bet on a quick recovery.
Trading volumes also show that pessimistic sentiment is in charge. During the biggest drops, more than 74,000 SOL units changed hands in only one hour, showing how serious the sell-off was. As the price settles around $154, the absence of considerable purchasing activity makes people worry that the bounce won’t last.
Tariffs and risk markets are two macroeconomic headwinds.
The return of Trump-era tariffs has had an effect on financial markets all across the world. For cryptocurrencies like Solana, which are typically thought of as high-risk investments, big changes in the economy can cause big price swings. Investors, who were already cautious because of past volatility, have cut back on their investment, resulting in nett realised losses of $323 million at the $156 level.
This situation has also changed the mood in the crypto world as a whole, and several cryptocurrencies have seen comparable drops. The speculative excitement that used to drive up the prices of Solana and other tokens has turned into caution. Meme currencies and high-beta assets have lost the greatest value.
Ecosystem Resilience in the Face of Price Pressure
Even though prices are moving in a difficult way, Solana’s ecology is still showing signs of strength. Circle’s latest minting of $250 million in USDC on Solana shows that the network is the most popular stablecoin network, making up 34% of total stablecoin volume. Also, the release of the Solana App Kit for mobile dApp creation and the launch of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) on Solana show that the ecosystem is still growing and changing.
Institutional interest is still high, as significant validator funds show that they believe in Solana’s scalability and potential for the long run. These changes show that even while prices are going down in the short term, the network’s fundamentals are still solid.
What’s next for Solana?
These next few days and weeks will be very important for Solana. A relief rally could happen if the token can stay above the $150 support zone and get people interested in buying again. However, if bearish momentum continues and important support levels are broken, prices might drop even further, possibly to $140 or lower.
Investors should keep a close eye on technical indicators, trading volumes, and changes in the economy as a whole. Fear is the most common feeling right now, yet in the past, times of intense pessimism have come before big changes in the crypto markets. For now, it’s best to be careful, but Solana’s long-term future depends on its capacity to handle these rough times and stay a top blockchain platform.
