Solana is having a rough time. After falling 7.32% yesterday, it’s down another 3.55% today, hitting $113. The technical outlook suggests a possible recovery, but fundamentals are shaky. The overall market sentiment of crypto is in the red, and the latest tariff announcement from Trump has added more uncertainty. Bitcoin and Ethereum took a hit, and altcoins like SOL followed. So, what’s happening with Solana? Let’s break it down.
PayPal Backs Solana – A Big Win, But No Price Boost
Big news! PayPal now supports direct transactions for SOL and LINK in the U.S. and its territories. Before, you could only buy these through MoonPay. Now, Solana is highly accessible, which is great for adoption.
Regulatory fears are also fading. The SEC has dropped its scrutiny of SOL as an unregistered security. Plus, institutional interest is growing, and U.S. policymakers are becoming more crypto-friendly. Sounds like bullish news, right? Well, despite this strong foundation, SOL’s price is still falling—dragged down by the broader market downturn for cryptos.
Tweet Source: https://x.com/coinbureau/status/1907457029381267862
Anti-CBDC Bill Moves Forward – Does It Matter for Crypto?
Meanwhile, in Washington, the U.S. House Financial Services Committee has voted to advance the Anti-CBDC Surveillance State Act (H.R. 1919). This bill targets to block the Federal Reserve from issuing a CBDC aka central bank digital currency directly to individuals. Lawmakers behind the bill believe CBDCs could lead to government financial surveillance.
Tweet Source: https://x.com/FinancialCmte/status/1907632000120361099
Former President Donald Trump supports this stance, and key financial leaders like Fed Chair Jerome Powell and Treasury Secretary Scott Bessent have also rejected the idea of a U.S. CBDC. While this bill doesn’t directly impact Solana, it reflects growing government interest in regulating cryptocurrencies—something all crypto investors should watch closely.
Solana Leads in DEX Volume – But a Whale’s Move Creates Pressure
Here’s some good news: Solana just became the #1 blockchain for 24-hour DEX volume! This shows that more traders are using Solana’s network for decentralized trading. But despite this milestone, SOL’s price is falling.
Tweet Source: https://x.com/Cointelegraph/status/1907714604240650386
One possible reason? A whale just unstaked 315,079 SOL ($37.28M) and deposited it into Binance. This kind of move usually hints at a possible sell-off, increasing supply on the market. Although the whale still holds 277,209 SOL staked, this big transfer has added short-term selling pressure, which isn’t helping SOL’s price today.
Tweet Source: https://x.com/Cointelegraph/status/1907752187033440593
Technical Analysis – More Pain Ahead?
Image Source: TradingView
The charts aren’t looking great. Solana’s key support at $124.51 has been tested too many times, making it weaker. Yesterday’s daily candle closed below this level, signaling a potential downward trend.
The MACD just turned bearish, with red bars forming below the zero line. The signal line has crossed above the MACD line, another classic bearish signal. Meanwhile, the RSI is at 34.93 and falling, heading toward oversold territory.
With all these signals lining up, Solana could see more downside unless buying pressure kicks in.
Summing Up – When Will Solana Bounce?
Right now, Solana has strong fundamentals but weak sentiment of the market. The PayPal expansion and DEX volume dominance show long-term potential, but short-term price action is dominated by a weak crypto market, whale activity, and technical breakdowns.
If macro conditions improve and selling pressure eases, SOL could stabilize. But for now, the path of least resistance is down. Please keep track of market trends and key support levels before deciding on your next move.
