Solana experienced a severe market downturn as its SOL token dropped to $140 on Thursday, representing a 50% drop from its all-time high value. The market decline started after Donald Trump released unexpected tariffs on the car sector.

Financial markets show significant uncertainty because of the proposed tariffs against international automakers.

Financial experts predict that Trump”s upcoming Liberation Day tariffs will damage US economics and motivate investors to leave dangerous markets. Bitcoin and all significant cryptocurrencies, along with major stock markets, showed decreases as this impact spread through the digital currency business.

Solana DeFi Faces Competition from Ethereum

Solana maintains its position among top blockchain networks yet its ecosystem continues to experience difficulties. Market trend downturn in Solana meme coins caused multiple projects to fail their insiders as many retail investors lost large amounts of money.

The market downturn hits both DeX trading on Solana”s network and token trader confidence. DeFi Llama statistics show that Solana DeX platforms did $8.7 billion of trading during one week, but this trading amount stays far below Ethereum and Binance Smart Chain totals, which dominate DeFi markets right now.

Some popular meme coins have managed to hold their value, indicating they might bounce back. Bonk, the most notable Solana meme token, increased 20% during its latest week. Several other meme coins, such as Fartcoin, Popcat, Cat in a Dog’s World, Gigachad, and Book of Meme, gained over 10% each as traders returned to speculative investments.

Solana Forms Bearish Flag Pattern, Indicates Breakdown

Solana token price data supports that investors should expect more price decreases. During February 25, SOL experienced a bearish death cross pattern through its 50-day and 200-day moving average analysis. Traders see this formation as a leading sign that ongoing market losses could happen.

Solana Drops Sharply as Tariffs Trigger Market Selloff

During recent days, Solana established a bearish flag trade pattern after going through a steep drop and coming to a rest. After two weeks of forming this trend, the token indicates it is close to breaking down.

A team of specialists expects that when SOL price breaks out from its $120 support, which the token tested repeatedly since April 2021, it will move toward $100. The price would decrease by this significant amount if taking the latest dip into consideration.

The market bears remain strong until SOL breaks above $170 after holding this level since January 25. This decisive move would restore buying power and push prices higher for SOL. The crypto community will assess Trump”s new economic measures while determining potential future price dips and necessitates reading Solana”s next market direction.

The Solana currency deals with improving market performances, but fundamental problems in the total economy plus technical indicators show upcoming volatility.