Solana (SOL) is down more than 16% in the last 24 hours, with its market cap slipping below $70 billion as selling pressure intensifies. The sharp decline follows its recent rally to $178 after being added to the US strategic crypto reserve. However, the momentum quickly faded, leading to a deep correction.

Technical indicators, including the Ichimoku Cloud and Directional Movement Index (DMI), suggest that SOL remains in a bearish phase, with downside risks still present. If SOL manages to stabilize and reclaim key resistance levels, a rebound towards $200 could still be possible in the coming weeks.

SOL Ichimoku Cloud Shows a Bearish Setup

SOL Ichimoku Cloud shows that the price is currently trading well below the cloud, confirming a bearish trend. The recent sharp decline followed a rejection from the Tenkan-sen (blue line), which is now sloping downward, signaling short-term weakness.

The Kijun-sen (red line) is also positioned above the price, indicating a lack of bullish momentum.

Meanwhile, the Senkou Span A and Senkou Span B form a red future cloud, suggesting that bearish conditions could persist in the near term. Downside pressure remains dominant unless SOL reclaims key levels and breaks above the cloud.

The Ichimoku Cloud serves as a multi-directional trend indicator. When the price is below the cloud, the asset is in a downtrend, and when it is above, it is in an uptrend.

A flat Kijun-sen often acts as a magnet for price action, meaning a potential short-term retracement could target that level. However, the bearish rejection at the Tenkan-sen and the expanding gap below the cloud suggests sellers are still in control.

If SOL fails to hold the current level, further downside could be expected. A move back above the cloud would be needed to shift momentum bullish again.

Solana DMI Shows Sellers Are Still In Control, But That Could Change Soon

Solana Directional Movement Index (DMI) chart indicates that the Average Directional Index (ADX) is currently at 22.1, down from 30.5 yesterday when the current correction began.

This decline follows SOL’s price surge after its inclusion in the U.S. crypto strategic reserve. A falling ADX suggests weakening trend strength, reflecting the market’s shift from strong momentum to a more indecisive phase.

While the correction is still in play, the lower ADX reading signals that the downtrend lacks significant strength compared to yesterday.

ADX measures trend strength, not direction, with key thresholds indicating market conditions. Readings below 20 suggest a weak or ranging market, while values above 25 indicate a strengthening trend. SOL’s +DI has fallen sharply to 21.5 from 46 two days ago, signaling reduced bullish pressure.

Meanwhile, -DI has climbed from 11.2 to 27.99 but has stabilized in the last hours. That implies that sellers are in control, though their momentum is not increasing.

Given these dynamics, SOL remains in a downtrend, but the declining ADX and stable -DI suggest selling pressure may be losing force. If ADX continues to drop, SOL could transition into a consolidation phase rather than extending the correction further.

Solana Could Return To $200 In March

The price of Solana surged sharply from $143 to $178 following the announcement of its inclusion in the U.S. strategic reserve. However, the rally was short-lived as selling pressure emerged, leading to a correction.

If the current downtrend remains strong, SOL could decline further, potentially testing the $125 support level. This zone is critical, as losing it would push SOL to its lowest trading levels since September 2024.

Given the current technical structure, with price trading below key indicators like the Ichimoku Cloud and the Kijun-sen, the further downside remains a possibility unless buying pressure increases significantly.

On the other hand, if Solana price manages to reverse its trend and regain momentum, it could challenge the $160 resistance level.

This would be the first key area to watch, as a breakout above this level could propel SOL towards $180, where it previously failed to sustain its rally two days ago.

If bulls manage to push SOL past this barrier, the price could reclaim levels above $200, potentially testing $205 as the next major resistance.

Michael Saylor announced that he is going to Trump’s White House Crypto Summit on March 7. Other than Saylor, three other crypto leaders have publicly announced their participation. This includes Paradigm’s Matt Huang, Bitcoin Magazine’s David Bailey, and Exodus CEO JP Richardson.

Ripple CEO Brad Garlinghouse mentioned being in Washington, DC, at the end of the week, and he seems like a likely participant. However, there is also an invite-only reception after the Summit, so he isn’t confirmed either.

Who’s Who at the White House Crypto Summit?

President Trump is planning to launch a Crypto Summit in the White House on March 7, which could have major implications for US crypto policy. The community has already been speculating on what could be on its agenda, like reducing crypto taxes or federal token acquisitions.

However, one question remains very open: who will be there?

“The guest list, according to two sources close to the proceedings, will be smaller than previously anticipated. A larger, invite-only reception is being planned across the street from the White House after,” FOX journalist Eleanor Terrett claimed.

This larger reception particularly complicates matters. For example, Ripple CEO Brad Garlinghouse claimed on social media that he would be in Washington, D.C., this week.

However, he may or may not participate in the main Crypto Summit. Ripple donated heavily to Trump and has praised his crypto policies, but that does not guarantee he got an invite.

Indeed, a few members of Trump’s administration will be present. So far, MicroStrategy’s (now Strategy) Michael Saylor and three other crypto leaders have confirmed their participation.

However, there is one important clue that may determine broader participation in the Crypto Summit. Recently, Trump announced a US Crypto Reserve that would include several US-based cryptoassets.

“I’ll be attending the White House Digital Asset Summit on Friday. Thank you to President Trump for the invitation. I look forward to discussing how America can take a leadership role in promoting the principles of open crypto and enabling builders in ecosystems such as Bitcoin, Ethereum and Solana,” wrote Matt Huang, Co-founder of crypto investment firm Paradigm.

Crypto Reserve Likely to Be on the Agenda

After Trump announced the Crypto Summit, several US-based cryptoassets grew in price. This impacted major assets like Cardano and XRP, which are in Trump’s Reserve proposal, and several smaller assets, which were not.

If Garlinghouse is halfway confirmed to be attending, Cardano CEO Charles Hoskinson also seems like a likely choice.

Ultimately, however, the Crypto Summit may run into the same problem that is vexing much of Trump’s crypto agenda. US-based cryptoassets surged after the Reserve was announced, but they fell shortly afterward.

Trump does not have the authority to buy these assets without Congress, and its support seems unlikely. His own party has opposed these purchases, let alone the Democrats.

In short, there are many factors to consider. The Crypto Summit will take place on the same day as the US Bureau of Labor Statistics’ next employment report, which may impact the markets.

The XRP price has retraced and lost the gains it recorded from its Sunday rally following Trump’s announcement that the crypto would be included in the crypto strategic reserve. Following this price correction, crypto analyst Trade City has key support levels that could determine XRP’s future trajectory. 

Important Support Levels For The XRP Price

In a TradingView post, Trade City highlighted $3.06717 and $1.67220 as critical support levels for the XRP price on the weekly timeframe. While analyzing the weekly chart, the analyst noted that after bouncing along the ascending trendline, XRP confirmed its breakout above $0.73056, which sparked the main bullish leg, sending the crypto up to $3.06717. 

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In line with this, Trade City remarked that $3.06717 is the all-time high (ATH) and a major supply zone. He added that the next bullish leg could begin soon enough if the XRP price can hold above this level. Meanwhile, in the event of a price correction, the analyst stated that the only key support viable in the weekly timeframe is $1.67220. 

Trade City revealed that the Relative Strength Index (RSI) oscillator has exited the overbought zone and returned to normal levels. He asserted that the bullish scenario for the XRP price becomes more likely if the RSI re-enters overbought conditions. 

Analysis Of The Daily Timeframe

Trade City went further to give an in-depth analysis of the XRP price on the daily timeframe. He stated that the first key observation on the daily timeframe for the XRP price is a strong bearish divergence on the RSI, which formed as the price moved sideways inside the range between $2.02967 and $3.30467. 

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The crypto analyst revealed that the trigger for this bearish divergence is a break below $2.02967, which has yet to happen. The analyst warned that a break below this support level could happen soon due to a drop in the trading volume. If this range breaks downward and the support level at $2.02967 is lost, Trade City stated that the XRP price could enter a deeper correction toward key Fibonacci levels such as 0.382, 0.5, and 0.618. 

The analyst noted that these three Fibonacci levels are strong support zones, which could prevent a further sell-off. Meanwhile, on the bullish side, if the XRP price breaks to the upside from its current range, the analyst assured that a new bullish leg will begin, pushing the crypto toward higher targets. The analyst’s accompanying chart showed that the XRP price could rally to as high as $4, marking a new ATH for the crypto. 

At the time of writing, the XRP price is trading at around $2.32, down over 12% in the last 24 hours, according to data from CoinMarketCap.

Featured image from Adobe Stock, chart from Tradingview.com