Solana's Price Holds Above $118 Despite Trump Tariffs, Bearish Signals

Since the beginning of March 2024, the $118 price level has acted as a crucial defense line for Solana’s [SOL] price, preventing it from falling further. Despite the price dropping below $115.92, it remained within this critical zone, which has historically stopped more severe price declines. Previous attempts to stabilize SOL’s price around $110 and $100 could now come into play, especially since traders have failed to reclaim the $118 support after the implementation of Trump’s ‘Liberation Day’ tariffs.

At the time of writing, both the MACD line and its Signal line were below zero at -6.34 and -5.93, respectively. The potential formation of a bearish crossover increased selling forces, which could lead to further market losses. However, the histogram indicated that momentum loss could potentially slow down, opening up opportunities for market stability or recovery. If SOL reclaims the $118 level, it could result in a move towards the descending trendline approaching the $130 area. A price jump through this resistance zone could create upward momentum, potentially targeting levels near $150 or higher.

Generally, Solana’s market has shown some bearish potential as the $118 zone has remained in limbo. This zone’s reaction could determine its next move. Holding below it would signal more bearishness, while reclaiming it might hint at a possible reversal. A deeper look into the on-chain activities showed that through Wintermute, Binance and Coinbase tactically cleared multiple SOL positions. They initiated a price boost to $135, flushing short positions at the peak by selling long positions until the price hit $120. This further led to the liquidation of longs below and around $120.

At press time, Binance had initiated the SOL purchases through Wintermute, as per Marty Party’s post on X, after finishing its previous transaction. This alluded to how SOL’s price trends could have been influenced by this transaction. The buyback operation seemed to indicate a possible market floor at $118, one which could produce positive market sentiment for a recovery towards $135 or higher. Only if bullish conditions return though. And, that will start with reclaiming $115. An inadequate level of market confidence could lead to another price decline, despite Binance’s buying activities.

Solana saw bullishness in other metrics. Its figures of $2.417 billion in daily DEX volume surpassed the volumes of Ethereum at $1.899 billion, BSC at $1.066 billion, and Base at $973.44M. Also, more than $550 million has been bridged from other chains to Solana over the past month, including over $400M from Ethereum to Solana alone. Over 1.15M new tokens were launched on Solana too. Conditions of elevated DEX usage, combined with multiple token creations, could drive SOL’s price towards $130 as it could appeal to more users on the network. However, profit-taking operations along with market movements could reduce SOL’s pricing to $100 as the market readjusts itself.