The price of Solana (SOL) has been declining following Donald Trump's reelection, dropping 7.35% to $157.25, its lowest point since November 6. This is part of a larger drop that began on January 19, when SOL hit its all-time high of $295.31. Several factors are contributing to the decrease in price, including the association of Solana with the North Korean-backed Lazarus Group, which has affected investor confidence. Additionally, concerns about the forthcoming unlocking of 11.16 million SOL tokens worth $1.79 billion on March 1 have led to worries of increased selling pressure and a further price decline. Market signals, such as declining open interest in the futures market and negative funding rates, reflect poor market sentiment. The SOL technical chart also indicates a bearish head-and-shoulders pattern. However, if SOL manages to hold above its current support level, a bounce back up to $215 could occur. The decrease in interest in Solana-based memecoins is also impacting SOL's price, as these coins contribute to network usage and demand for SOL as transaction fees. Overall, the combination of negative factors is significantly affecting SOL's price, and traders are awaiting stronger indications of further downward movement or a potential bounce.



Other News from Today