Solana Plunges Below $100 as Trade Wars Crush On-chain Activity
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Solana crashed below the critical $100 mark on Sunday, sending shockwaves through the crypto market. The popular blockchain's token tumbled to $97, marking an 18% nosedive in just 24 hours. Nobody saw this coming. Well, maybe some did. The broader crypto market was already on edge thanks to President Trump's new tariffs, which sent investors running for the exits faster than free pizza disappears at a developer conference.
This isn't just a bad day for SOL. It's been a brutal quarter. The token has hemorrhaged over 60% of its value since mid-January 2025. Trading volumes exploded 230% to $5.39 billion as panic selling intensified. Seems like everyone wanted out at once. SOL claimed the dubious honor of second-highest altcoin liquidations, with $62 million wiped out in a single day.
Technical indicators paint a grim picture. The $100 support level? Gone. Shattered. Next stop: potential bounces at $92 or $84 if things continue south. Liquidations hit $27.3 million in 24 hours, with longs suffering the worst ($15.7M vs $11.6M shorts). Both MACD and RSI scream “oversold!” But markets don't care about indicators during a selloff.
On-chain metrics aren't providing much comfort. Realized price touched a 3-year low. Active addresses are declining, not exactly what you want to see during a dip. Network activity has slowed considerably. Transaction volumes bounce around like a kid on sugar, following price movements. The recent 57% drop since January has drastically impacted user confidence in the network. The upcoming unlock of 465,000 SOL could add significant selling pressure to an already vulnerable market.
Not everyone's running scared, though. One whale staked 71,318 SOL worth about $7.63 million right in the middle of the bloodbath. Gutsy move. This long-term confidence stands in stark contrast to retail investors dumping their bags in panic.
The market selloff coincides with disappointment over Trump's Bitcoin Reserve Executive Order and increasing global trade tensions. Macroeconomic uncertainty isn't helping either. For now, Solana holders are left wondering: is this just another dip to buy, or the beginning of a much longer winter?
