President Donald Trump's imposition of 25% tariffs on imports from Canada and Mexico, and a 20% increase on Chinese imports, has prompted retaliatory threats. These trade wars have triggered billions of dollars in cryptocurrency market liquidations, pushing leading altcoins like Solana to their yearly lows. Consequently, key on-chain metrics have plummeted, increasing the likelihood of Solana's price remaining below $100.

Solana's Active Address Count Declines

Solana's price is at a critical juncture, having fallen below the crucial $100 support level, its lowest point since February 2024. Coinglass data reveals significant Solana position liquidations in the past 24 hours, totaling approximately $86.3 million. This includes $67.2 million in liquidated long positions and $19.1 million in short positions.

Exacerbating the selling pressure, over $50 million worth of SOL tokens are scheduled to unlock this week. Simultaneously, the broader altcoin market reflects high fear, with the crypto fear and greed index at 22.

On-chain activity has also weakened. Solana's active address count dropped from a peak of 3.52 million to 2.99 million last week. New addresses similarly decreased from 3.51 million to 2.78 million. This decline suggests weakening demand and interest, favoring sellers.

Beyond the recent price drop, Solana has also lost its top decentralized exchange (DEX) position to Ethereum, potentially impacting sentiment negatively. However, some positive developments may appeal to buyers. One significant factor is the push for a Solana ETF in the United States. While approval chances are less certain than for Litecoin or Dogecoin ETFs, approval would attract long-term support.

What's Next for SOL Price?

Solana (SOL) faces strong downward pressure after failing to hold at $118. The price initially dipped below $100, reaching a low near $95, before rebounding above $100. At the time of writing, SOL trades at $106, down over 1.53% in the last 24 hours.

Interestingly, buyers have accumulated SOL around the sub-$100 dip, contributing to the recent rebound.

The Relative Strength Index (RSI) stands at 39, suggesting strong bearish momentum. If buyers successfully push the price towards the $110 resistance level, SOL could potentially reach the $135-$160 resistance zone. Breaking this level could restore market confidence and potentially drive the price towards $180.

Conversely, failure to maintain above $110 could trigger a sharper decline, potentially reaching the $100 support level. A breach below this could lead to further losses, pushing Solana below $80.