SOL, the native token of the Solana blockchain, has weakened in recent days amid rising trade tensions between the United States and China. The coin slipped below the $200 mark, reflecting elevated market volatility and growing investor caution.
SOL falls below $200 as US-China trade tensions spark risk-off sentiment
SOL has lost roughly 1% of its value in the past 24 hours and is currently trading around $195 per coin. This decline comes as the US-China trade dispute fuels uncertainty and a general risk-off mood across cryptocurrency markets.
China announced targeted levies intended to protect its shipping industry from what it described as “discriminatory” measures. The tariffs will apply to vessels that are owned, operated, built, or flagged by the United States, while excluding ships built in China.
China framed the move as a response to US fees applied to Chinese ships, with US authorities saying their policy aimed to support American shipping firms. The tit-for-tat measures have increased geopolitical and trade-related uncertainty for investors.
Market participants are also watching for a speech by the Fed Chair expected today. Traders will seek guidance from Powell’s remarks on the outlook for the upcoming monetary policy meeting. At present, it remains unclear whether the Fed will cut interest rates later this month, particularly since major economic releases have been limited by the ongoing US government closure.
SOL may slide further amid broader bearish trend
The 4-hour SOL/USD chart shows a bearish pattern after Solana’s weak performance over recent weeks. The token dropped nearly 20% over the weekend, re-testing the $170 area for the first time in weeks.
Solana briefly rallied on Monday to around $213 but failed to sustain momentum. The price has since fallen below $200 and could decline further in the near term.
If SOL continues its correction and breaks the daily support at $192.74, the decline could extend toward last weekend’s low near $171. An RSI reading around 48 indicates bears still hold the upper hand, while the MACD remains in bearish territory, signaling the potential for further downward pressure.
Conversely, if buyers regain control, SOL could retest the recent high near $213 and attempt a move toward the trendline resistance around $221 over the coming hours or days. Monitoring these key levels will be critical for assessing the next directional move in Solana’s price.