Solana (SOL) faces ongoing challenges as macroeconomic factors, especially renewed concerns over tariffs, dampen investor enthusiasm. Currently trading around $154.50, SOL has been confined within a narrow range between $152.33 and $158.06, reflecting a 3.76% fluctuation over the past 24 hours. Technical analysis indicates that despite earlier signs of resilience through higher lows, SOL recently dipped from $156.74 to $154.86 in just one hour, breaking below its mid-April upward trend channel.
Market sentiment appears bearish based on derivatives data: open interest in SOL futures has declined by 2.47% to $7.19 billion, and long liquidations surged to nearly $31 million, signaling pressure on leveraged positions. Meanwhile, short liquidations remain minimal, further reinforcing the downward bias.
Despite short-term struggles, institutional confidence in Solana remains strong. Circle’s recent minting of $250 million USDC on Solana has increased liquidity and reinforced the network’s position as a stablecoin hub, now handling 34% of all stablecoin trading volume. Additionally, SOL Strategies’ $1 billion validator fund demonstrates sustained long-term optimism about Solana’s scalability, even as the current price action encounters setbacks.
Technical highlights show SOL trading within a 5.73-point range, with support near $152.80. The asset previously exhibited bullish momentum, hitting a session high of $158.06 on strong volume, but faced a reversal in the early morning hours, dropping from $156.74 to $154.86 amid increased selling. Heavy selling occurred between 01:53 and 01:54, with over 74,000 units traded rapidly, marking a shift to a bearish short-term outlook. Currently, SOL consolidates around $154.50, indicating relative stability yet potential downside risk if trading volume does not pick up.
