Solana price has stalled this week after its recent recovery hit a strong resistance level at $146.9.
Solana (SOL), the sixth-biggest player in the crypto industry, was trading at $140 on Thursday, down by over 50% from its highest point this year.
The recent rally ended after Donald Trump surprised markets by announcing sweeping tariffs targeting the automobile sector. These tariffs have triggered concern among market participants due to their scale and potential economic impact.
Some analysts caution that his upcoming Liberation Day tariffs will lead to a recession in the US. This explains why Bitcoin (BTC), altcoins, and the stock market dropped on Thursday.
Solana has faced ongoing headwinds in recent months as concerns about its broader ecosystem linger. Many Solana-based meme coins have crashed, largely due to insider exits, leaving retail investors holding the bag.
This meme coin collapse has negatively impacted Solana’s decentralized exchange (DeX) ecosystem and its network fees. According to DeFi Llama, Solana’s DeX platforms processed over $8.7 billion in assets in the last seven days, much lower than Ethereum and BSC Chain handled.
On the positive side, there are signs that some meme coins are crawling back. Bonk has jumped by 20% in the last seven days, while Fartcoin, Popcat, Cat in a dogs world, Gigachad, and Book of Meme have surged by over 10% in the same period.
Solana price technical analysis
The daily chart shows SOL is still at risk of a deeper bearish breakdown. On February 25, the token formed a death cross pattern, when the 50-day and 200-day moving averages crossed, a widely watched bearish signal.
More recently, SOL has formed a bearish flag pattern, consisting of a steep vertical drop followed by a consolidation phase. It has been forming the flag section for the past two weeks.
If Solana breaks below the key support at $120, a level it has tested multiple times since April last year, the next target may be $100, which would mark a 30% decline from current prices.
This bearish scenario would be invalidated if the token climbs above the $170 resistance level, the lowest swing point from January 25.
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