- Solana (SOL) has dropped by more than 6% in the past 24 hours.
- The altcoin has broken below $200 as macroeconomic headwinds intensify.
- This brings the losses for the week to 13%, with Solana now poised near support at $190.
As cryptocurrencies struggle to hold onto gains, Solana’s price has plummeted 6% in the past 24 hours.
The losses mean the altcoin is now below the psychologically significant $200 threshold, with bulls giving up gains from earlier in the month when SOL rose to near $240.
This sharp decline builds on a gruelling week where SOL has shed more than 13% overall.
As the chart below shows, paring gains has Solana price teetering on the edge of a critical support zone.
Risk-off sentiment, catalysed by a fresh escalation in the US-China trade tension, has also impacted all top coins.
Bitcoin has dropped to near $110,000 again, while Ethereum is testing the $4,000 mark.
Is SOL poised for a retest of $150?
SOL mirrors the overall financial markets’ outlook.
A positive resolution of the trade tensions could act as a catalyst, potentially restoring confidence and halting the slide.
For now, SOL’s weakness is evident. The token is testing the $190 support level on the daily chart — a zone that has shown resilience in recent sessions but remains fragile.
A breakdown from here could trigger another leg lower, setting up a retest of $170 — last week’s low when SOL tumbled from $222.
If selling pressure intensifies, even that buffer may fail, exposing the token to a deeper slide toward $150.
Technical indicators such as the daily RSI and MACD currently favour the bears, reinforcing the downside risk.
What could help Solana bulls?
Market sentiment offers a sliver of optimism, however.
The Crypto Fear & Greed Index has edged up from “extreme fear” to a more tempered “fear” following dovish comments from Federal Reserve Chair Jerome Powell.
His remarks hinted at the likelihood of two additional interest rate cuts this year, a development broadly bullish for risk-on assets, including cryptocurrencies.
Lower rates could ease borrowing costs, stimulate economic activity, and funnel fresh liquidity into digital assets.
Historically, the fourth quarter has been crypto’s strongest stretch — a seasonal tailwind that could help cushion SOL’s downside, particularly if global trade tensions ease.
Fueling optimism further is mounting anticipation around a potential spot exchange-traded fund (ETF) approval.
Expectations are running high that such a move could unlock billions in institutional inflows, validating Solana’s growing maturity and providing a more structural bid for price stability.
A sustained breakout above the $200 level would likely invalidate the prevailing bearish outlook.
If that happens, bullish momentum could drive SOL toward the $280 and $300 resistance zones.
