Solana (SOL) attempted to break out of the $100 price level earlier this month but was unsuccessful. Since then, the asset has faced a price correction and has fallen to support levels at $84-85. According to CoinGecko data, SOL price is up 0.3% in the past 24 hours, but is down 11.7% on the weekly chart, 0.3% on the 14-day chart, 0.1% over the last month, and 47.7% since May 2025. Let’s take a look at why Solana (SOL) is facing a price crash and whether this asset has a chance of rebounding soon.
Why is Solana facing a price crash? Will it rebound?
Solana (SOL)’s recent decline comes amid a broader market correction. Bitcoin (BTC) rose to $82,000 before falling to the $76,000 level. Most other assets are following BTC’s trajectory. BTC’s decline is likely caused by higher-than-expected inflation rates. Rising oil prices and high bond yields have heightened concerns about the macroeconomic situation. Given this situation, expectations for a rate cut have receded. If the rate increases, Solana (SOL) and other cryptocurrencies could continue their downward trajectory.
Meanwhile, the highly anticipated CLARITY Act passed the Senate Banking Committee. The move is another step toward regulatory clarity in the U.S., but the bill could face further challenges. If this bill is not passed, Solana (SOL) price could take a further hit. Banking groups are calling for a ban on stablecoin yields, while some senators are calling for more ethical representation from those in power when it comes to investing in cryptocurrencies.
The crypto sector has struggled to regain momentum since late 2025, as investors began taking a risk-off approach. With no end in sight to geopolitical tensions and macroeconomic concerns, Solana (SOL) and the larger crypto market are likely to continue on a sideways trajectory, if not face further decline.
(Tag translation) Solana
