Solana Breaks Key Support – $10 SOL Possible?

Solana (SOL) has gone down by nearly 13% in the past week as the crypto markets were hit by Trump’s hostile rhetoric and actions on the trade front.

Fear that unilateral tariffs imposed on key commercial allies could result in higher inflation in the U.S. has taken over the market and has depressed investors’ sentiment.

As a result, most financial assets have suffered declines lately.

solana under 120 pic.twitter.com/i20PUzwEXR

— Ansem (@blknoiz06) April 2, 2025

SOL has not been spared, and this latest decline has pushed the token below a key psychological threshold.

Although trading volumes have gone down by 40% despite China’s announcement that it will impose retaliatory tariffs on U.S. goods, the situation could deteriorate rapidly once the American session starts.

Other cryptocurrencies like Sui (SUI) and Toncoin (TON) are already experiencing much sharper drops of 3.7% and 8% respectively. S&P 500 futures have gone down by 2.8% as well during the pre-market session as well.

Meanwhile, the Fear and Greed Index currently stands at 25, which means that investors are just one bad news away from once again entering Extreme Fear territory.

SOL Could Drop to $100 and Below if It Loses This Key Support

Looking at Solana’s daily chart, we can see that this is the second time that SOL has broken below the $120 level in the past 30 days or so.

Multiple support breaks typically result in near-term weakness in the asset’s price.

However, the $110-$115 levels have been strong areas of support for SOL many times in the past, meaning that buyers consider these price levels attractive to amass the token.

The market may have already priced in Trump’s measures but there is still some degree of uncertainty concerning how other countries will react to his decisions.

Momentum indicators favor a bearish outlook for SOL as the Relative Strength Index (RSI) is still standing below the signal line. Meanwhile, the MACD’s histogram shows that negative momentum is accelerating.

For now, the $110 level is the most relevant support area to watch. A bearish breakout could result in a drop to the $100 level for the first time since late February.

If the market enters a prolonged bearish phase driven by continued tariff pressure, Solana could break below $100, with historical support levels sitting around $60, $30, and even as low as $10. While a drop to these levels would likely require a severe market downturn, they remain potential long-term targets if sentiment continues to deteriorate.

That said, even if Solana faces downside risk in the broader market, its ecosystem continues to expand—especially within the meme coin space.

As Solana continues its dominance in the meme coin sector, a new scaling protocol called Solaxy has emerged to enhance the network’s ability to handle high transaction volumes efficiently.

Solaxy ($SOLX) Presale Raises $29M to Address Solana’s Congestion Issues

Back in January, when $TRUMP launched, the Solana network struggled to keep up with a sudden surge in transaction volume, leading to delays and transaction errors across both user wallets and crypto exchanges.

Solaxy addresses these issues by eliminating network congestion, bundling transactions off-chain before finalizing them on the Solana mainnet.

The development team has already made major strides in testing and is working with leading blockchain partners like Hyperlane and Sovereign to fast-track the official launch of the protocol.

$SOLX, the native token of this Layer 2 chain, is expected to see a surge in demand once leading wallets and exchanges adopt the protocol.

Early investors have the best chance to maximize returns by securing $SOLX now at its discounted presale price of $0.001684.

To buy $SOLX, simply head to the Solaxy website and connect your wallet (e.g. Best Wallet). You can either buy by swapping SOL or USDT or use a bank card to settle the transaction.