Solana’s price dropped sharply to the $95–$100 zone, marking its weakest level since April 2025 as a broad risk-off move swept across crypto, equities, and commodities. The decline came alongside sell-offs in bitcoin, AI-linked stocks, and gold, highlighting Solana’s growing sensitivity to macroeconomic and geopolitical stress.
Although SOL briefly reclaimed the $102 level, momentum remained fragile following the liquidation of approximately $165 million in leveraged long positions, which accelerated downside pressure and damaged short-term sentiment.
Macro Fears Weigh on Market Confidence
Investor caution intensified amid escalating geopolitical tensions in the Middle East and renewed concerns about an economic slowdown after major layoffs were announced in the U.S. technology sector. Additional pressure emerged from uncertainty surrounding AI spending, particularly around cloud infrastructure demand and future profitability expectations.
These developments reinforced a defensive stance across financial markets, pulling liquidity away from higher-beta assets like Solana.
Onchain Strength Offers Potential Support
Despite price weakness, Solana’s onchain fundamentals remain resilient. Network activity continues to outperform many competitors, with Solana ranking near the top in both transaction fees and total value locked. Strong usage supports staking yields and sustains baseline demand for network fees.
Meanwhile, the annualized funding rate on SOL perpetual futures fell to -17%, signaling extreme bearish positioning. Historically, such deeply negative funding levels tend to be short-lived and can precede sharp rebounds if selling pressure exhausts.
For now, traders are watching whether buyers step in at current levels or if broader macro conditions continue to dictate price action.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.