The price of Solana's native token (SOL) has plummeted by nearly 12.75% within 24 hours, reaching a three-week low of $112.50 following significant market volatility. This downturn has been largely attributed to several factors. Firstly, new tariffs introduced by the Trump administration have escalated trade tensions, driving investors away from riskier assets like cryptocurrencies towards safer investments. Additionally, SOL's futures market displays negative conditions, with the annualized rolling basis dropping below 0%, indicating weakened demand for SOL futures. This change signals a decline in speculative interest among traders. Furthermore, SOL's funding rates have turned negative, highlighting a bearish sentiment; recent metrics showed funding rates dropped markedly from 0.14% to -0.0462, therefore affecting trader expectations about future pricing. Technical analysis indicates that SOL has entered a bear flag pattern, projecting potential further declines to around $96, complicating the outlook for the token in the near term.

Source 🔗