Why Is Solana Down Today? SOL Plunges Below $100 As Traders Brace for More Pain

Solana (CRYPTO: SOL) plunged below the key $100 threshold Monday, hitting an intraday low of $96.99 as investors fled risk assets amid an escalating global trade war and growing fears of a financial crisis. 

At the time of writing, SOL is trading at $106.25, down over 7% in the past 24 hours and more than 22% in the last month.

The latest rout was triggered by President Donald Trump's sweeping “Liberation Day” tariffs on major trading partners, including China, Canada, and Mexico. The ripple effects of the aggressive trade measures have spread across equities, commodities, and crypto markets, with altcoins like Solana suffering some of the steepest declines.

Why Is Solana Falling?

The combination of geopolitical stress and thin crypto liquidity has proven toxic for Solana. Over the past 24 hours, more than $62 million in long SOL positions were liquidated, according to Coinglass—the second-highest liquidation total among altcoins. Trading volume spiked 300% to $6.79 billion, pointing to the scale of panic selling.

From a technical standpoint, Solana breached key support levels at $112, $105, and then $100. The MACD remains firmly bearish, while the Relative Strength Index (RSI) has dipped below 30, signaling heavily oversold conditions. These indicators point to continued weakness unless SOL can decisively reclaim $100 and hold it as support.

Solana Price Prediction for April 8, 2025

Market watchers are split on whether SOL can hold the line. If the broader crypto market stabilizes, a bounce to the $105–$108 resistance zone is possible. But if $100 fails to act as a reliable support level, analysts warn of a deeper slide toward $92 or even $84.

What's Next for Solana?

Despite its short-term weakness, long-term sentiment toward Solana remains relatively upbeat. The platform continues to benefit from its low fees, fast transaction speeds, and a growing developer ecosystem. However, near-term risks are mounting.

Over $50 million in SOL tokens are expected to unlock this week, adding further selling pressure. Additionally, the broader altcoin market is gripped by extreme fear, with the crypto fear and greed index dropping to 23.

Still, some investors remain bullish. A prominent whale address reportedly staked over 71,000 SOL worth $7.6 million during the crash, according to on-chain data viewed by Coingape, signaling confidence in the project's recovery. 

Meanwhile, Helius Labs CEO Mert Mumtaz described SOL as “the most obvious asymmetrical bet” amid the market downturn.

If Solana can reclaim the $100 support level and broader markets begin to recover, SOL could stage a meaningful rebound. But for now, technical headwinds, macro pressures, and liquidation risk continue to weigh heavily on the price.