- Summary:
- Solana price has wiped out more than 80 percent of gains made following President Donald Trump's strategic Federal Reserve announcement.
The price of Solana declined for the second successive day on Tuesday, mirroring the wider crypto market slump. The decline came despite US President Donald Trump’s announcement that Solana would be included in a proposed strategic Federal cryptocurrency reserve.
SOL price was at $126.18, down by 4.1% at the time of writing, adding to a steeper 20% loss a day earlier. A return to near five-month lows signals a bearish undercurrent that could trigger an extended decline in the coming days. Down by 35% in the last month and at -27% year-to-date, Solana price momentum is firmly in the hands of the bears.
The reading on the Average Directional Index (ADX), an indicator that measures the strength of a market trend, is at 35 on the daily chart. This not only shows control by the sellers, but denotes a strong downward trend, signaling the likely extension of losses in the near-term.
Immediate resistance on Solana price is at the psychological $140 mark, and much will depend on the forthcoming White House Crypto Summit. Scheduled to take place on March 7, the summit will serve as a platform for defining the roadmap to the creation of a strategic Federal crypto reserve and pathways for a deeper integration of cryptocurrencies into the mainstream economy.
Solana Price Prediction
Solana price pivots at $139, and resistance at that level will signal a continuation of the downtrend. The coin is likely to find its first support at $132, but a stronger downward momentum will break below that level and potentially test $126.
On the other hand,the momentum will shift to the upside if SOLUSD goes above $139. With the buyers in control, the pair will likely go higher and encounter the first barrier at $146. Breaching that level will invalidate the downside narrative. In addition, such momentum could result in more gains to test $154.
