Solana News Today: Solana Falls 4.88% as Broader Crypto Market Corrects Amid Tariff Fears

Solana (SOL) has experienced a 4.88% price drop in the last 24 hours, testing key support levels at $165 and $160 amid a broader market correction impacting the top 10 cryptocurrencies [1]. The failure to break above the $171.84 resistance has triggered selling pressure, raising concerns about further downward momentum. Analysts from COINOTAG highlight that daily candle closures near $168.71 will be critical in determining the next phase of price action. If buyers fail to regain control, the asset may continue its descent toward the $150–$160 range, signaling sustained bearish momentum [1].

The broader market context reinforces the likelihood of a prolonged correction. All top 10 cryptocurrencies by market capitalization are currently in negative territory, indicating a sector-wide downturn. This decline is influenced by macroeconomic factors such as uncertainty over U.S. chip tariffs and evolving regulatory environments, which have dampened investor confidence [2]. While some speculative forecasts suggest that Solana could reach $500 by 2026 under certain conditions, such as a preference for coin purchases over futures and $10 billion in net creations, the immediate market dynamics do not support these projections. These forecasts are based on analyst assumptions and have yet to be validated by actual market behavior [1].

Solana’s technical setup remains bearish in the short term. The inability to reclaim the $171.84 resistance has led to increased selling pressure, and a break below the $165 support level could trigger further declines. Traders are advised to closely monitor the $168.71 zone for potential trend reversals or the continuation of the correction. The key support levels at $160 and $150 remain critical for assessing whether the asset can stabilize or if the downward trend will persist [1].

Despite these challenges, Solana’s long-term fundamentals—such as its high-performance blockchain infrastructure and growing ecosystem—continue to attract interest from developers and enterprises. However, the current price action reflects a reevaluation of risk exposure, with investors prioritizing caution. Until a significant macroeconomic shift or a major on-chain development occurs, the bearish sentiment is likely to persist, keeping Solana under pressure.

Sources:

[1] Could Solana Hit $500 Before 2026? – https://www.mitrade.com/au/insights/news/live-news/article-8-1004988-20250801

[2] Uncertainty Over Us Chip Tariffs – https://comparebrokers.co/news/uncertainty-over-us-chip-tariffs/