Why is Solana (SOL) price down today?

Solana’s native token, SOL, has dropped by practically 12.75% within the final 24 hours to a three-week low of $112.50 on April 3.

Key drivers behind SOL’s sharp correction embrace:

• The newest spherical of tariffs from the Trump administration and their potential to erase trillions of {dollars} from the inventory market.

• Adverse SOL futures foundation and funding charges.

• A number of technical elements.

Let’s look at these catalysts intimately.

Trump tariffs rattle Solana and broader crypto market

Solana’s decline occurred within the wake of US President Donald Trump’s April 2, “Liberation Day” tariffs. The escalation in commerce tensions led buyers to maneuver away from riskier property, together with cryptocurrencies like SOL, in favor of safer investments.

Associated: Trump ‘Liberation Day’ tariffs create chaos in markets, recession considerations

SOL’s latest value decline is intently tied to fading demand in its futures market, as mirrored by a pointy drop within the annualized rolling foundation on three-month contracts.

The annualized rolling foundation exhibits how far more (or much less) futures contracts are buying and selling in comparison with the present spot value, expressed as an annual share.

A excessive foundation means futures are buying and selling at a big premium, signaling bullish expectations and robust demand for leveraged lengthy positions. However, a low or damaging foundation means futures are buying and selling near or beneath the spot value, indicating an absence of speculative curiosity or rising bearish sentiment.

SOL futures foundation peaked in mid-November 2024 at 18% and was beneath 0% as of April 3, displaying that merchants are not paying a premium for SOL.

Solana’s funding charges flip damaging

Solana’s value drop additional aligns with its declining funding charges, indicating a weakening bullish momentum out there.

SOL’s weekly funding charges slipped to -0.0462 on April 3 from 0.14% a day in the past, and this damaging funding means quick merchants are paying longs, highlighting the expectation for additional draw back.

Presently, SOL’s every day chart exhibits a sample of bear flag continuation, a course of the place consecutive bearish constructions affirm and drive costs decrease.

As of April 3, SOL was buying and selling beneath its flag sample’s decrease trendline, projecting a value decline to $96.

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a call.