Despite Being Included in the Crypto Strategic Reserve List, Solana (SOL) Price Crashed 27%

Solana's inclusion in the list of Crypto Strategic Reserve assets didn't save it from the global financial markets crash on Monday.

Solana's inclusion in the list of Crypto Strategic Reserve assets didn't save it from the global financial markets crash on Monday.

Donald Trump's tariffs erased the bullish impact of his Strategic Reserve announcement, with major crypto assets retracing their last Sunday's pump.

Solana price fell 27% from $180 to $132 before a marginal bounce back to $140 at press time.

Solana price predictions from experts suggest a strong possibility of more downside volatility. There is now intense speculation on whether the cycle top is in for SOL or if buying the dip is still the correct move.

Why Is Solana Price Crashing Today?

Donald Trump's tariffs have triggered a significant correction in the global financial markets. The S&P 500 has now erased its entire post-election gains, wiping out $3.3 trillion since February 19th.

Meanwhile, gold prices are showing strength while Crude Oil Futures crashed as the threat of a major recession now looms on the US economy. The Atlanta Federal Reserve projects that the US GDP will contract by 2.8% in 2025 Q1, a 6.7% downside adjustment in just 4 weeks.

Crypto prices are taking a beating as well, considering the broader macroeconomic uncertainty has started a risk-off trend. The crypto total market capitalization is down by over $1 trillion since December 18th.

Breaking: Crypto markets have now seen -$1 TRILLION of market cap lost since December 18th.This officially puts crypto in a bear market, down -26% from its all time high. pic.twitter.com/cnmWOx7DPd— Shivam Athavale (@Shivam_Athavale_) March 4, 2024

The Solana price is now down by more than 50% from its all-time high that it reached amid the TRUMP meme coin mania.

Solana Price Prediction — How Low Can $SOL Go?

Solana price predictions from experts suggest that the bottom isn’t in for the altcoin just yet.

It looks increasingly likely that the SOL will fall below its 100-week EMA and 20-month SMA. However, a potential bottom here would be a significant sign of bullish strength.

Instead, Solana could likely form a major bottom near its 100-week SMA, which is currently hovering at $113.

This also aligns with the potential bottoms suggested by prominent analysts. For instance, top Bybit trader Bluntz recently hinted at $117 being a key level for the bulls to watch.

Similarly, popular trader Ninja has suggested that sidelined investors should buy at $110 if given the opportunity.

$BTC 69420SOL 110ETH 1600XRP 1.75thank me later— Ninja (anti-scam) (@Ninjas_op) March 4, 2024

Crucially, the crypto bull market isn’t over. Commerce Secretary Howard Lutnick has already hinted that tariffs could be lifted if nations tackle the flow of fentanyl into the US. Fundstrat's Tom Lee, who has been extremely accurate with his projections, told CNBC today that the market could bottom as early as this week.

Whales Are Buying Low-Cap Solana Ecosystem Coins

Whales are buying low-cap coins in the Solana ecosystem, betting on their upside potential for when the broader market sentiment recovers.

For instance, a whale purchased nearly $200k worth of Solaxy (SOLX) just yesterday, a Solana layer-2 coin that has already raised nearly $25 million in its ICO.

Solana's network congestion issue during meme coin rallies has become a major cause of concern for the bulls. However, Solaxy could prove to be a game-changer, thanks to its Layer-2 solution, which features ZK roll-ups, a deterministic sequencer, a multi-chain bridge, and integration with data availability solutions like Celestia.

Solana's network congestion has made Layer-2 launches inevitable on the chain, and Solaxy now has the first-mover advantage.

It promises high network throughput, fast and cheap transactions and exponential scalability.

It is, therefore, no surprise that SOLX is being viewed as undervalued during its presale. Prominent investors are viewing it as one of the best meme coin investments in 2025, even before its launch.

Visit Solaxy Presale