15% Weekly Decline Pushes Cryptocurrency Below $120 Mark

Tldr

• Solana (SOL) has fallen approximately 15% over the past week, currently trading around $119
• SOL broke a key support level at $128, with technical analysts warning of further potential decline
• 24-hour trading volume has surged by 103.28%, suggesting increased market activity despite price drops
• Recently launched Solana ETFs (SOLZ, SOLT) are showing minimal trading volume compared to Bitcoin ETFs
• The Solana Policy Institute has launched in Washington D.C. to advocate for regulatory interests

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Solana’s price has been on a downward trajectory, with the popular cryptocurrency experiencing significant losses over the past week. As of April 3, 2025, SOL is trading at approximately $119, representing a 24-hour decline of about 3.72% and a weekly drop of around 15%.

The cryptocurrency, which ranks sixth by market capitalization at approximately $60.74 billion, has shown signs of weakness that technical analysts had predicted. The price action comes amid broader market uncertainty and macroeconomic shifts affecting the entire crypto sector.

In the latest 24-hour trading session, SOL started around $124.76 before briefly climbing to $135.69. However, selling pressure soon pushed the price down to a low of $116.98 before a small recovery to current levels.

Despite the negative price action, one positive indicator is the massive 103.28% increase in 24-hour trading volume, which now stands at over $6 billion. This surge in activity could potentially signal a forthcoming change in market direction.

Technical Analysis Shows Weakening Support

Technical analysts have been monitoring Solana’s price chart closely, with several pointing out warning signs before the recent decline. Crypto analyst Ali Martinez highlighted that trendlines weaken with repeated testing, which played out as SOL broke below its crucial support level near $128.

The more times a trendline gets tested, the weaker it becomes. Eventually, it breaks. #Solana $SOL pic.twitter.com/sSCbU0AgUw

— Ali (@ali_charts) April 2, 2025

The cryptocurrency is currently forming a bearish triangle pattern, suggesting a continuation of the downward trend. After failing to sustain an upward breakout attempt above the upper boundary of this triangle, SOL was pushed back toward the lower boundary.

Bollinger Band indicators show increased volatility, with SOL trading near the lower band support of approximately $116. This suggests continued downward momentum. The cryptocurrency faces immediate resistance at the middle band ($129.73) and further resistance at the upper band ($143.42).

The Relative Strength Index (RSI) is hovering near 38.45, approaching oversold territory. However, without strong buying support emerging, SOL could continue its downward movement before seeing a meaningful recovery.

Support and Resistance Levels to Watch

Currently, $135.69 acts as SOL’s immediate price resistance level. Beyond that, $147.05 and $152.77 represent the second and third key resistance levels that would need to be broken for a sustained recovery.

On the support side, $116.98 serves as the immediate support level. If this level fails to hold, subsequent support can be found at $113.18 and $110.06. Some analysts suggest that if bearish momentum intensifies, SOL could test lower support levels at $99, $79, and potentially even $58.

The $118 support level has emerged as a particularly critical zone that traders are watching closely. Historically, this level has acted as a strong demand zone where buyers have stepped in to absorb selling pressure and push prices higher.

New ETFs Struggle for Traction

Adding to Solana’s headwinds is the lukewarm response to its recently launched ETFs. On March 20, Volatility Shares introduced the Solana ETF (SOLZ) and the 2x Solana ETF (SOLT), but these financial products have seen minimal volume so far.

Bloomberg ETF analyst Eric Balchunas reported that the Solana futures ETFs performed roughly 80 times worse than Bitcoin’s BITO ETF in their first few days of trading. This underperformance suggests limited institutional interest in accessing SOL through these specific ETF vehicles, potentially reducing market demand and support.

The new Solana futures ETF hasn’t done much, a million in volume first few days is decent for normal ETF but nothing vs btc, about 80x less than $ Bit‘s first few days or $ 4‘s. Like we’ve said, the further you get away from btc the less asset there will be (which rhymes btw) pic.twitter.com/OqoIpzdeel

— Eric Balchunas (@EricBalchunas) March 31, 2025

Policy Development in Washington

On the regulatory front, one of Washington’s top crypto lobbyists, Miller Whitehouse-Levine, has launched the Solana Policy Institute. This nonprofit organization will advocate for Solana’s interests in regulatory discussions as lawmakers increase scrutiny of digital assets.

Whitehouse-Levine, formerly head of the DeFi Education Fund, emphasized the need for “smart regulation” in the cryptocurrency space. This development comes at a time when regulatory clarity is increasingly important for the future of blockchain projects.

Despite the current price decline, some market participants remain optimistic about Solana’s long-term prospects. The cryptocurrency has a total supply of 597,686,854.75 SOL with a circulating supply of 512,627,741.55 SOL.

According to some price predictions, if bullish momentum returns, SOL could potentially see an 11.01% spike over the upcoming month, potentially reaching the $140.10 mark in the next 30 days.

For now, market participants are closely watching whether the $118 support level will hold or if further selling pressure will push SOL to test lower support levels.