Solana Plummets 60% Amid Trade War Fears, Analysts Eye Rebound

Solana has experienced significant selling pressure over the past week, as the broader crypto market grapples with the impact of aggressive trade policies. The altcoin has plummeted over 60% from its recent all-time highs, reflecting the harsh conditions affecting even the strongest large-cap tokens. The intense selloff was triggered by fears of a prolonged trade war and mounting macroeconomic tensions, leading to a wave of panic selling across risk assets.

Despite the severe market conditions, there are indications that a short-term rebound could be imminent. Prominent analyst Bluntz shared his outlook, noting that he has started bidding on several oversold altcoins like Solana, which are showing bullish divergence. According to Bluntz, many of these tokens have fallen sharply, setting the stage for what he believes could be "sizeable bounces" in the near term. While he does not believe this is the definitive market bottom, the presence of bullish divergence across multiple charts offers a glimmer of hope for traders seeking relief rallies.

Solana is currently at a critical technical and psychological crossroads as the $100 level remains a key price to hold. After a brutal selloff that intensified over the weekend, Solana dropped more than 20% in just a few hours, reflecting the panic and uncertainty dominating crypto markets. The breakdown below $120 signaled a major shift in sentiment, and the breach of $100 has left bulls scrambling to defend one of the last major supports before lower demand zones come into play.

Bulls initially lost control as price action turned sharply bearish last week, triggered by broader macroeconomic instability. The new wave of tariffs has intensified trade war fears, adding pressure to an already fragile global market. Risk assets like Solana have been hit especially hard, with many altcoins suffering from sharp drawdowns amid growing investor fear.

Bluntz's contrarian view notes that he has begun bidding on several altcoins — including SOL and HYPE — that have dropped over 60% in near-vertical moves. He highlighted bullish divergences forming across multiple charts, which often precede relief bounces. “I definitely don’t subscribe to the idea this is ‘THE BOTTOM,’” he added, “but sizeable bounces are highly likely in my opinion.”

While the long-term trend remains under pressure, signs of oversold conditions and hidden strength could offer traders short-term opportunities. For Solana, the ability to reclaim and hold the $100 level could spark a recovery bounce. Otherwise, deeper losses may follow.

Solana (SOL) is currently trading at $108 after several volatile days attempting to hold above the critical $100 support level. This price range has become a major battleground for bulls and bears, as sentiment across the broader crypto market remains fragile. Macroeconomic instability, rising trade tensions, and ongoing selling pressure have pushed risk assets into uncertain territory — and Solana is no exception.

Bulls are now faced with a crucial challenge. To shift the momentum and signal the beginning of a recovery phase, SOL must not only defend the $100 mark but also reclaim the $120 level, which previously acted as support before turning into resistance. A breakout above this zone could open the door for further gains and a potential short-term trend reversal. However, failure to hold the $100 level would likely lead to a deeper retracement. Analysts warn that a decisive breakdown below this support could send SOL plunging into the $80 range, where the next significant demand zone sits. With price action hanging in the balance, the coming days will be critical for Solana’s trajectory — either triggering a recovery bounce or accelerating the current downtrend.