Why is Solana down today?
Solana falls 4.5% to $150.79 as Pump.fun ban shakes memecoin ecosystem
Solana (SOL) slid 4.5% over the past 24 hours to $150.79, with trading volume spiking 57% to $4.61 billion amid renewed market turbulence.
The dip follows the unexpected suspension of Pump.fun and founder Alan Cohen by social platform X, which also took down a series of crypto-related accounts. While no explanation was provided, the crackdown has sent jitters through the memecoin space—an ecosystem tightly linked with Solana. Adding intrigue, MemeStrategy, a tech investment firm listed in Hong Kong, saw its stock surge 28.5% after announcing the purchase of 2,440 SOL (~$368,820) via licensed crypto broker SOL Group. Though institutional confidence is apparent, Solana still faces near-term pressure as regulatory and social media headwinds dampen sentiment.
Technical signals suggest rebound potential amid falling wedge formation
From a charting perspective, Solana is trading within a falling wedge pattern—a setup typically considered bullish in the medium term. The price recently tested the wedge’s lower boundary and bounced, hinting at increasing buyer activity. However, key resistance looms overhead, with both the 50-day and 200-day simple moving averages acting as roadblocks.
Currently, the 50-day SMA stands at $160.9, while the RSI has recovered to 47.27 after dipping into oversold territory. Though momentum remains neutral, the RSI’s recent rebound could indicate an impending shift in favor of the bulls. A break above $160 would likely strengthen this thesis and open the door to a more sustained recovery.
Kharitonov points to geopolitical fears, token unlock, and speculative risks
Analyst Anton Kharitonov highlights a mix of macro and ecosystem-specific headwinds behind Solana’s recent pullback. The ongoing Israel-Iran conflict has rattled global markets and cooled demand for risk assets, crypto included.
Kharitonov says:
“Despite the recent correction, Solana has significant growth potential, but I’m waiting for a decline in Bitcoin dominance to see the bullish scenario play out.”
Meanwhile, Solana’s inability to breach the $160–$165 resistance zone triggered technical selling, compounded by looming supply-side fears. A $2 billion token unlock scheduled in the near term has sparked concerns of a liquidity glut. Additionally, speculation over a potential $1 billion meme token launch on Pump.fun has raised fears of congestion on the Solana network. Combined with broader profit-taking across the crypto market following Bitcoin’s surge, these factors continue to weigh heavily on SOL in the short term.
Recently we wrote that crypto exchange Bybit is entering the decentralized finance (DeFi) race with the announcement of Byreal, a new Solana-based decentralized exchange (DEX).
