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What’s Behind Solana Price Drop Today?
The Solana price is down over 4% today, just two days after reaching a weekly high at around $158. This price decline is due to several factors, including a drop in Solana’s network activity between October 16 and 17. Meanwhile, the sentiment in the broader crypto market has also affected SOL, with the Bitcoin price cooling off after the rally earlier in the week.
Why The Solana Price Is Down
SOL is down over 4% today following a decline in the network activity on Solana. DeFiLlama data shows that decentralized exchange (DEX) volume on the network dropped on October 16 and 17, with $1.69 billion and $1.68 billion recorded on these days. The network recorded a weekly high DEX volume of $2.06 billion on October 14, with the Solana price rising to as high as $158 in the process.
The drop in DEX volume means fewer users interacted with the network on October 16 and 17, which explains why the coin’s price dropped. A surge in trading volume typically leads to a spike in price, while a drop in volume leads to downward pressure. The drop in Solana’s DEX volume comes just days after SOL overtook ETH in weekly and daily DEX volume.
It is worth mentioning that Ethereum has once again reclaimed its crown from Solana. In the last 24 hours, Ethereum has recorded a DEX volume of $1.7 billion compared to Solana’s $1.6 billion.
Meanwhile, the Solana price is also down today because of the sentiment in the broader crypto market. The Bitcoin price is currently correcting after the rally earlier in the week. Other coins tend to follow the flagship crypto, which explains why SOL is also experiencing a price correction of its own.
What Next For The Crypto’s Price
Crypto analyst Crypto Patel stated in an X post that the Solana price is consolidating within key and resistance zones. He further claimed that the price had rejected the resistance at around $160, which could lead to a decline towards the support level at around $140 for a retest.
If the Bitcoin price continues to retrace, a retest of the $140 support zone looks likely for the Solana price. Crypto analyst Ali Martinez recently stated that BTC could drop back to $63,300 if it fails to hold the critical support level at $66,780 following a retest.
In the long term, SOL’s outlook is undoubtedly bullish, as crypto commentators like Eugene Ng Ah Sio predict that the crypto could hit a new all-time high (ATH) of $1,000.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Solana-based Official Trump meme coin has come under strong selling pressure hours after Donald Trump posted about it on his social media platform Truth Social. The TRUMP price is down by 13% in the last 24 hours taking a dive under $20. On the weekly chart, the meme coin has lost more than 33% while it is down 70% from its all-time high of $75.
TRUMP Price Crashes Under $20
With the onslaught of the bears, the TRUMP price is down more than 13% to below $20. Also, the daily trading volume has surged by 65% to more than $3.4 billion as traders move to dump it.
Furthermore, the derivatives data from Coinglass shows that the TRUMP open interest has also slipped by more than 13% to $720 million while the 24-hour liquidations have soared to more than $15 million with $11 million in long liquidations.
Buy the Dip Opportunity for TRUMP Investors?
After hitting the daily low of $18.75, the TRUMP price bounced back and is currently trading at $21.09. Several market analysts believe that this is a buy-the-dip opportunity for crypto investors. Captain Faibik, a prominent market analyst, has weighed on it.
“Buying the $TRUMP dip! The falling wedge is still in play, expecting a strong bounce back,” Captain Faibik on X stated, pointing to the technical pattern suggesting a possible bullish reversal.
The falling wedge, often seen as a precursor to price breakouts, has fueled speculation that TRUMP could stage a significant comeback. Another market analyst Edward Morra stated that the TRUMP price bounced back from the perfect support at $20. He further added that he would be going long on the altcoin from here. “Went a bit deeper than I expected. Loaded up on TRUMP (average $21.5). Ideally, looking for a bullish reclaim above $25 for continuation,” he said.
Donald Trump’s Attempt to Pump
With the TRUMP price crashing nearly 70% from its all-time high, President Donald Trump took to social media to promote his meme coin. “I LOVE $TRUMP!!” President Trump wrote in a Truth Social post asking users to get back and buy the meme coin.
However, crypto industry players have criticized this move with SkyBridge Capital founder Anthony Scaramucci slamming the President. In a message on the X platform, Scaramucci wrote:
“President Trump posted on Truth Social last night in an attempt to “pump” his $TRUMP memecoin (yes that’s a real sentence that many have normalized). The result has been an acceleration of the “dump,” now down 70% from its peak. The jig is up”.
The Official Trump token has slipped to the fourth spot losing in this latest fall, losing the third spot to PEPE Coin. The broader crypto market is down today as Trump tariffs kick in which could lead to another major crash ahead.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The global crypto market tumbled again in the last 24 hours while investors didn’t even recover from DeepSeek AI and Bank of Japan’s rate hike-led market crash last Monday. Bitcoin and Ethereum prices are now down 6% and 8% in a week, respectively.
The macro factors wreaked havoc on the stocks and crypto markets again as Donald Trump decided to immediately sign the order to impose tariffs on Canada, Mexico, and China. As a result, the global crypto market cap tumbled more than 3% from $3.49 trillion to $3.35 trillion. It means more than $140 billion erased from the crypto market in just under 24 hours.
Moreover, the Crypto Fear & Greed Index has dropped from Greed to Neutral at 47 today, indicating negative sentiment continues to build among investors.
Bitcoin Price and Crypto Market Downfall Due to Trump Tariffs
US President Donald Trump declared a national emergency citing fentanyl and immigrants under the 1977 International Emergency Economic Powers Act (IEEPA). This gave President Trump power to sign an executive order imposing 25% tariffs on Mexico and Canada, as well as 10% tariffs on imports from China.
As a result, Bitcoin and altcoins fell on concerns of a trade war risking higher prices for U.S. consumers. US PCE inflation data on Friday indicated that inflation has increased for three consecutive months. Notably, US stock indexes ended the week lower.
Besides, economists say blanket tariffs with multiple top trading partners are bad for the US, inflation, and lead to higher prices and layoffs. The decision has triggered a trade war as Canada, Mexico, and China retaliate.
Prime Minister Justin Trudeau said Saturday that Canada will impose 25% tariffs against C$155 billion of US goods.
This comes after the US announced it will put 25% tariffs on Canada and Mexico, as well as a 10% tariff on China https://t.co/DW7GA4W8Ka pic.twitter.com/RwIPrJdCl7
— Bloomberg (@business) February 2, 2025
Crypto Market Sees $700 Million in Liquidations
Coinglass data indicates over $700 million in crypto liquidations, with over 250K traders liquidated in the last 24 hours. The largest single liquidation order of ETHUSDT valued at $11.84 million happened on Binance.
It is important to note that the largest liquidation happened during the crypto market crash last Monday. An investor liquidated BTCUSDT valued at $98.46 million on crypto exchange HTX.
Nearly $520 million long and $80 million short positions were liquidated, with BTC, ETH, SOL, DOGE, XRP, TRUMP and RUNE leading the liquidations. In the last 12 hours, $350 million in longs were liquidated causing the crypto market to bleed.
Experts Predict Crypto Market Correction
Crypto trader Skew predicts “short-term mayhem” in the crypto market as uncertainty around how far tariff bluffing will go. He used the term “bluffing” because these tariffs are unlikely to be the final standing percent due to retaliatory tariffs by Canada and other countries.
According to The Telegraph, hedge funds are betting big that the stock market to suffer a devastating crash due to tariffs by US President Donald Trump. Moreover, data from Goldman Sachs is sending shockwaves through financial circles, revealing a dramatic surge in ‘short’ positions against US stocks.
With the crypto market in the crosshairs due to Bitcoin ETFs and institutional interest, Bitcon price fell to a 24-hour low of $99,022. Whereas, ETH price tumbled more than 5% to a low of $3,069. Also, top altcoins XRP, SOL, DOGE, ADA, LINK and others have plunged more than 5% in the last 24 hours.
60% of American plebes don’t have $1k of emergency funds. The Fed is “worried” about inflation. So Trump decides to hike energy prices via tariffs? He ain’t a fool, maybe he is trying to trigger a mini financial crisis? It’s def in the maybe column. pic.twitter.com/VEiI9qZZqC
— Arthur Hayes (@CryptoHayes) February 2, 2025
Meanwhile, the US dollar index (DXY) has jumped to 108.50 indicating a strengthening dollar. Also, the 10-year Treasury yield is spiking above 4.54%. Notably, BTC price usually moves in opposite to DXY and US Treasury yields.
A major selloff may happen only if Bitcoin price tanks below the $95K level. Traders are even staying away due to double-top pattern formation in the daily timeframe.
Varinder Singh
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space.
At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting.
Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The crypto market this week has concluded on a high note with several developments. Some of them stood out, like the launch of Bitcoin Miners ETF along with other altcoins ETF filings. Further, the U.S. FOMC happened this week and was able to offer clarity about what the cryptocurrency community can expect in terms of investments or price fluctuations. Meanwhile, Elon Musk pushed for DOGE, triggering speculation that the meme coin could rally by 900%.
Here’s a brief report of some of the most buzz-worthy market updates reported by CoinGape Media in the last week.
Crypto Market Updates: Bitcoin Miners ETF and Other Altcoins ETFs Filings
Grayscale Bitcoin Miners ETF
Grayscale helmed the launch of Bitcoin Miners ETF, ticker MNRS, with the aim to boost BTC mining and related ecosystems. The asset management firm, with MNRS, has enabled investors to gain passive exposure by allocating a portion of their portfolios to companies that comprise the Indxx Bitcoin Miners Index. David LaValle, Global Head of ETFs at Grayscale, talked about the launch of MNRS and acknowledged that Bitcoin miners were the backbone of the network.
Filings for XRP, Polkadot and Other Crypto ETFs
Also, Grayscale made another major development this week by filing for spot XRP ETF with NYSE. Grayscale is aiming to convert its XRP trust into ETF, which will be listed and traded on the New York Stock Exchange. The asset manager earlier filed for Litecoin ETF with the US SEC.
21Shares filed S-1 Registration with the US SEC for Polkadot ETF approval. If approved, this would be one of the first ETFs for the Polkadot ecosystem. The US SEC also cleared dual Bitcoin and Ethereum holding by Bitwise ETF.
US FOMC Interest Rate Update
The US FOMC two-day meeting concluded with the no rate cut and cautious outlook by the US Fed. It is now expected that the Federal Reserve will hold the current rate still for most of the year. The effective interest rate is in the range of 4.25% and 4.50% after the favorable vote of all twelve members of the committee. Interstingly, traders had predicted an unchanged rate which happened despite Donald Trump seeking rate cuts from authorities.
An unchanged interest rate by the US Federal Reserve aims to control inflation amid heavy speculation of the implementation of high tariffs and craft a better outlook for the economy. A lower interest rate enables investors to set aside a larger allocation to riskier investments in crypto. Nevertheless, overall sentiments are bullish, with MicroStrategy acquiring more BTC and asset managers filing for more ETFs with the US SEC.
Elon Musk Pushes for DOGE
Department of Government Efficiency Hints At Targeting US Debt
Tesla CEO Elon Musk pushed for DOGE by outlining that he plans to cut unnecessary spending by the Federal Government. An official announcement has highlighted that the Department of Government Efficiency was able to save almost $1 billion a day. DOGE is now targeting a $36 trillion US debt. The ticker symbol of the department has in turn brought attention to the meme coin, Dogecoin, as it is linked to D.O.G.E. The meme coin is speculated to rally by almost 900% in the future.
MuskIt and Dogecoin Meme Crypto
That being said, Elon Musk’s father Errol Musk made it to the headlines by emphasizing his plan to raise $200M by capitalizing on the MuskIt coin, a meme coin that shares their family name. Funds that he raises will be allocated to the Musk Institute, a for-profit think tank. MUSKIT coin, after this development, skyrocketed by 262.73% in 24 hours and its 24-hour trading volume surged by 7723.53%.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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