Solana Drops 3.76% Amid Tariff Concerns, Bearish Sentiment

Solana (SOL) has been under significant pressure due to macroeconomic headwinds, particularly renewed tariff concerns that have shaken investor confidence. The token is currently trading around $154.50, having established a tight trading range between $152.33 and $158.06 over the past 24 hours, reflecting a 3.76% swing.

Despite previous indications of resilience with higher lows, SOL experienced a sharp decline from $156.74 to $154.86 within a single hour, breaking below its mid-April uptrend channel. This movement underscores the bearish sentiment currently dominating the market.

Derivatives data further supports this bearish outlook. Open interest in SOL futures has decreased by 2.47% to $7.19 billion, while long liquidations have surged to $30.97 million. This indicates significant pressure on leveraged positions, with short liquidations remaining minimal, reinforcing the downside bias.

Despite the short-term volatility, institutional interest in Solana remains robust. Circle’s recent $250 million USDC mint on Solana has added substantial liquidity and solidified the network's leadership in stablecoin transactions, with 34% of all stablecoin volume now routed through Solana. Additionally, SOL Strategies’ $1 billion validator fund signals sustained long-term confidence in the protocol’s scalability, even as short-term price action falters.

Technical analysis highlights several key points. SOL established a 5.73-point range ($152.33–$158.06), indicating a 3.76% intraday swing. Earlier price action traced a clear ascending channel with solid support near $152.80, supported by heavy accumulation. SOL hit a session high of $158.06 during the 19:00 hour on strong volume, signaling earlier bullish momentum. However, a reversal unfolded in the early morning hours, with SOL falling from $156.74 to $154.86 on increased selling. Selling pressure peaked between 01:53–01:54, with over 74,000 units traded in a sharp burst. Short-term momentum turned bearish as lower highs and weaker volume defined the final trading stretch. As of the latest update, SOL is consolidating near $154.50, suggesting price stability but with downside risk if volume doesn’t improve.