Solana Slips Under $130, But Something Bigger Might Be Brewing
Solana (SOL) fell by 8% on Thursday to $115 after former President Donald Trump’s tariff announcement sent the broader crypto market lower.
SOL ranked among the weakest performers in the top 10 cryptocurrencies, with a year-to-date loss of 39.3%.
The so-called meme coin winter has weighed down both Solana’s token prices and its on-chain activity.
Daily transactions (DT) and daily active addresses (DAA) have both declined sharply.
Data from Artemis shows that the 7-day simple moving average for DAA dropped from 7.8 million in December to 4.1 million at the time of writing.
Daily transactions also fell, with the 7-day SMA sliding from a peak of 113 million to 87.5 million, as meme coins continue to dominate Solana’s on-chain activity.
Still, the Solana network’s ecosystem has expanded. Stablecoin balances on Solana have increased by more than 300% over the past 12 months.
At the same time, decentralized exchange (DEX) volumes have remained steady compared to March last year, with applications like Jupiter, Raydium, and Pump.fun maintaining steady usage despite the market downturn.
Solana’s growing ecosystem suggests it may be positioned to weather current market pressures.
Solana Nears Key Support Zone as Market Pressure Builds
Solana appears close to testing a key support zone between $109 and $111, which has served as a floor several times over the past 10 months.
Historically, rebounds from this range have led to notable recoveries for SOL, making it a level worth watching.
Market sentiment remains weak, but with the tariff news already public, a reversal could follow if traders believe the worst has passed.
If SOL holds this support and rebounds, it may climb back to the high $130s. A bearish breakdown, however, could see the token fall toward $100 in the coming days.
Technical indicators point to continued weakness. The Relative Strength Index (RSI) has triggered a sell signal, and the MACD histogram has turned negative for the first time since March 13.
The Solana network has previously struggled to handle peak usage. As its ecosystem grows, a layer-two scaling solution like Solaxy (SOLX) may help reduce transaction delays and errors.
Solaxy (SOLX) Raises Nearly $29M to Launch its L2 for Solana
Back in January when Official Trump (TRUMP) was launched, Solana struggled to keep up with a spike in transaction volumes.
Solaxy (SOLX) would have helped in this scenario as its layer-two scaling protocol is designed to bundle transactions offline in a side chain before sending them to the mainnet.
Developers have already made significant progress in releasing this rollup. They partnered with Hyperlane and Sovereign to perform asset transfer tests on the Solana devnet and have reported back satisfactory results.
$SOLX, the L2’s utility token, will see its demand rise once top wallets and exchanges embrace Solaxy.
Solana is still the strongest competitor to Ethereum amid its low fees and fast transaction speeds. Hence, the future of this L2 is quite promising.
To buy $SOLX, simply head to the Solaxy website and connect your wallet (e.g. Best Wallet). You can either swap SOL, USDT, or ETH for this token or use a bank card to make your investment.