Solana Hits Yearly Low Under $120 Following Trump’s Tariff News

Solana’s price has dropped below $120 after a volatile reaction to Donald Trump’s recent tariff announcement. While the crypto market initially showed optimism, it quickly shifted to a bearish sentiment, mirroring broader declines across digital assets.

After a rough start to 2025, Solana's struggles to regain ground have been further compounded by Trump’s speech, leaving investors uncertain about the market's future direction

Trump’s Speech Shakes the Crypto Market

When President Donald Trump took the stage to announce new tariffs, the market was poised for a possible positive shift, especially with crypto assets on everyone’s radar. Initially, when the speech started, Solana's price surged, but the excitement soon turned to disappointment when Trump made no mention of digital currencies. As the focus remained on tariffs, investor confidence waned, and the market quickly turned bearish.

Bitcoin initially surged to $87K on the back of market excitement but quickly fell back to $83K, highlighting the volatility in the market. Ethereum also struggled to find its footing, now hovering around $1,820, well below the $2K mark it had reached earlier in the year. This lack of clear direction from Trump left many traders hesitant, causing a significant drop in the total market cap, which fell to $2.68 trillion, down 1.16% in just one day.

How Solana Reacted to the Tariff News

Solana has experienced one of the wildest rides in the wake of Trump’s speech. The coin spiked to $136 early in the address, as traders speculated on positive news. But once it became clear that crypto wasn’t on Trump’s agenda, the price took a sharp dive, dropping below $120. Right now, Solana is at its yearly low of $118, being down 5% in a day and 14% in a week and reflecting a broader bearish sentiment across the market.

Despite the price decline, Solana’s trading volume has surged by 105%, reaching $6.19 billion, indicating that traders remain active and engaged. While some see this as a potential buying opportunity, others are waiting for clearer signals before jumping back in.

The next few days will be crucial in determining whether this dip is just a short-term pullback or the start of a longer-term downtrend. The market is still highly uncertain, and Solana’s ability to reclaim key levels will play a major role in setting its direction moving forward.

Where Is Solana Headed From Here?

Looking ahead, the technical indicators are not looking great for Solana. The price chart has formed a bearish triangle pattern, suggesting a continuation of the downward trend. The coin briefly tested the upper boundary of this triangle, but the lack of strong buying momentum led to a rejection, sending Solana back toward the lower boundary near $118. If this support level fails to hold, Solana could face even deeper losses, with potential drops to $99 or even $79 in the worst-case scenario.

That being said, Solana’s ecosystem remains strong. It continues to attract developers and investors, especially as it positions itself as one of the most scalable alternatives for decentralized app deployment. The Solana blockchain, while facing a slump in daily transactions, still boasts impressive capabilities that could lead to a long-term recovery if market sentiment shifts.

For now, traders will be closely watching the $118 support level. If it holds, there could be a short-term rebound. However, without renewed bullish momentum, Solana’s journey might remain volatile for the foreseeable future.

Conclusion

As the market waits for Trump’s tariff news to settle and for clearer direction from major assets like Bitcoin and Ethereum, all eyes are on Solana to see if it can rebound or if the bearish trend will continue.

The coming days will likely be pivotal in determining its short-term trajectory. While the volatility is unsettling, Solana’s ecosystem remains robust, and its future largely depends on whether the market can regain confidence and push through the current uncertainty.