Solana’s SOL Drops 4.50% Amid Pump.fun Ban and Geopolitical Tensions

Solana’s native token, SOL, experienced a significant decline, dropping over 4.50% in the last 24 hours to reach around $150 on June 17. This downturn was driven by multiple factors, including the ban on the Solana-based memecoin launchpad Pump.fun and a broader flight from risk assets due to geopolitical tensions.

The ban on Pump.fun, which occurred on June 16, removed the platform and its associated accounts from X, the primary platform for launching and promoting Solana-based memecoins. This sudden blackout removed a key engine of retail engagement, triggering a sell-off across the Solana memecoin sector and SOL. Pump.fun had become a major driver of onchain activity and speculative momentum on Solana, with thousands of memecoins launching through the platform over the past few months.

Additionally, the escalating conflict between Israel and Iran, along with remarks made by former US President Donald Trump at the G7 summit, contributed to a broader risk-off sentiment. This led to a flight from risk assets, including SOL, as investors sought safer havens such as US dollars or gold. The decline in SOL’s price was accompanied by drops across major US stock indexes, reflecting the broader market sentiment.

Technically, Solana is forming a descending triangle, a bearish reversal pattern that often appears after an extended rally or failed breakout. This pattern shows lower highs pressuring a flat support level around $141, indicating weakening buying momentum. The triangle is developing after SOL’s local top near $210 in mid-April, suggesting a potential shift from a bullish to a bearish bias. SOL was rejected near its 50-day exponential moving average (EMA) at around $156, reinforcing short-term selling pressure. The price is now hovering just above the triangle’s support, with a breakdown increasing the likelihood of a sharp drop toward the $110–$115 area, a target 25% below current prices.