**Solana Faces Market Turmoil Amid Tariff Announcements**
Solana (SOL) experienced a rough week, dropping 8% to $115 after former U.S. President Donald Trump announced new tariffs that rattled financial markets. The broader crypto market followed suit, with Bitcoin and Ethereum each losing over 4%.
Technical analysts have raised concerns, warning that if Solana dips below a critical support level, it could trigger a sharp sell-off. Currently, Solana hovers between $109 and $111, a crucial range that has previously sparked significant rebounds.
Adding to the pressure, Solana’s on-chain activity has waned. Daily active addresses have decreased from 7.8 million in December to 4.1 million, and daily transactions fell from 113 million to 87.5 million. Despite these challenges, Solana’s ecosystem shows resilience. Stablecoin balances have surged by over 300% in the past year, and decentralized exchange volumes remain strong.
Meanwhile, institutional interest remains robust. Fidelity has filed for a spot Solana ETF, potentially paving the way for greater mainstream adoption. This follows major developments in Solana’s ecosystem, including the minting of 250 million new USDC tokens and PayPal’s expansion of its crypto offerings to include Solana.
The coming weeks will be critical for Solana. While developments like the ETF filing and ecosystem growth offer optimism, the immediate future may be shaped by external economic pressures, such as Trump’s tariff policies. Traders are on edge, watching closely to see if SOL can maintain support or fall below the $100 mark.
