Why Solana (SOL) Price Dropped: Key Factors Explained
The Solana (SOL) price declined by over 4.5% within 24 hours. Two primary factors drove this movement: the suspension of Pump.fun on X and escalating geopolitical tensions in the Middle East. These developments reduced retail participation and increased risk aversion, directly affecting SOL’s market performance.
The Impact of Pump.fun’s Suspension
Pump.fun, a popular Solana-based memecoin launchpad, played a significant role in driving onchain activity. Its removal from X eliminated a crucial platform for Solana memecoin promotion. The ban also affected notable projects like GMGN and ElizaOS, leading to widespread selling pressure across Solana’s memecoin sector.
Geopolitical Uncertainty and Market Effects
Growing tensions between Israel and Iran created market instability. Comments from US President Donald Trump during the G7 summit further discouraged risk-taking. This environment particularly impacted speculative assets like SOL, which depend heavily on retail investor sentiment.
Technical Outlook: Bearish Pattern Emerges
SOL’s price action formed a descending triangle, typically indicating potential downward movement. The token faces resistance near its 50-day EMA at $156. If the $141 support level fails, SOL could decline 25% to the $110–$115 range.
Key Takeaways
- SOL’s price drop resulted from Pump.fun‘s suspension and Middle East tensions
- The platform’s removal reduced activity in Solana’s memecoin ecosystem
- Geopolitical concerns increased caution toward speculative crypto assets
- Technical analysis suggests possible further decline to $110–$115
