Solana's Plunge: Can SOL Rebound from $138?

Solana Price Crash Deepens: Will SOL Drop to $138?

Solana (SOL), the high-speed blockchain platform, has witnessed a significant price decline in recent days, with its value plummeting by more than 20% within a week. The cryptocurrency, which once boasted a market capitalization of over $60 billion, has now shed more than half of its value, raising concerns about its future prospects.

The recent sell-off in the cryptocurrency market, triggered by geopolitical tensions and a wave of U.S. tariffs against China, Canada, and Mexico, has sent shockwaves through the industry. Ethereum (ETH) and XRP (XRP) have also experienced significant declines, with ETH/USD and XRP/USD dropping more than 17% and 16%, respectively. Bitcoin (BTC), the world's largest cryptocurrency, has also felt the heat, with its price falling by 4.1% at the time of writing.

The decline in Solana's price has wiped out all market gains made since December, bringing prices back to where they were before the U.S. election. The total liquidations in the crypto market exceeded $2.2 billion, with Ethereum leading the liquidation wave, as combined long and short liquidations exceeded $609.9 million. More than 730,000 traders were affected by the mass sell-offs, as uncertainty gripped the market.

The single largest liquidation order occurred on Binance, where a tether-margined ETH trade worth $25.6 million was closed. Futures markets were also hit hard, with traders of ether-linked products losing over $600 million in the past 24 hours. Combined losses on XRP and DOGE futures totaled $150 million, while altcoin-tracked products shed $138 million. Ether-tracked futures lost $84 million.

The sell-off comes amid escalating trade tensions sparked by U.S. President Donald Trump's decision to impose steep tariffs on Canada and Mexico. The move disrupted North American trade relations, with both countries threatening retaliatory measures. It drew sharp criticism from economists and global leaders, with The Wall Street Journal editorial board labeling it the "Dumbest Trade War in History." Financial markets are bracing for economic repercussions, as higher tar