News 
March 27, 2025 
3 min. 
Solana’s recent upward momentum has come to a halt, encountering strong resistance at $146.9. As of Thursday, the sixth-largest cryptocurrency was trading at $140, marking a significant 50% decline from its peak earlier this year.
The latest rally fizzled out after Donald Trump’s unexpected announcement of sweeping tariffs on the automobile industry. These aggressive trade measures have rattled market sentiment, raising fears about their economic consequences. Some analysts warn that his upcoming Liberation Day tariffs could push the U.S. economy into a recession, fueling Thursday’s sell-off in Bitcoin, altcoins, and the broader stock market.
Beyond macroeconomic factors, Solana has been grappling with internal challenges, particularly within its ecosystem. The collapse of several Solana-based meme coins—many of which suffered due to insider exits—has left retail investors at a loss. This downturn has also affected Solana’s decentralized exchange (DeX) activity and network fees. Data from DeFi Llama shows that Solana’s DeX platforms processed $8.7 billion in transactions over the past week, significantly lagging behind Ethereum and Binance Smart Chain.
Despite these setbacks, some optimism remains. A few meme coins have shown signs of recovery, with Bonk rallying 20% in the last seven days. Others, including Fartcoin, Popcat, Cat in a Dog’s World, Gigachad, and Book of Meme, have posted gains of over 10% during the same period.
As Solana navigates both external economic pressures and internal ecosystem struggles, investors remain on edge, watching closely for the next major move.
Solana Price Analysis: Is a Deeper Drop on the Horizon?
Solana’s price action remains precarious, with technical indicators pointing to a potential bearish breakdown. The daily chart highlights lingering downside risks, especially after the formation of a death cross on February 25—an ominous signal that occurs when the 50-day moving average dips below the 200-day moving average. This pattern often suggests extended selling pressure.
Adding to concerns, SOL has been shaping a bearish flag pattern. This formation typically consists of a sharp decline followed by a period of consolidation, hinting at a possible continuation of the downtrend. Over the past two weeks, Solana has been developing the flag structure, making its next move crucial.
If SOL fails to hold the critical $120 support level—which has acted as a strong floor since April last year—the next likely target could be $100, representing a nearly 30% decline from current levels.
However, this bearish outlook could be invalidated if Solana manages to break above the $170 resistance level, which marks the lowest swing point recorded on January 25. A decisive move past this zone could signal renewed bullish momentum and shift market sentiment in SOL’s favor.
