SOL, the native token of the Solana blockchain, has weakened in recent days as rising trade tensions between the United States and China increased market uncertainty. The coin slipped below the $200 level amid ongoing volatility.
SOL falls below $200 as US-China trade dispute sparks risk-off mood
Solana’s SOL has lost roughly 1% in the past 24 hours and is trading near $195 per token. The decline coincides with renewed trade friction between the US and China, which has pushed investors toward safer assets and spurred a risk-off sentiment across cryptocurrency markets.
China announced tariffs it says are aimed at protecting its shipping industry from what it calls “discriminatory” measures. Those duties are intended to apply to vessels owned, operated, built, or flagged by US interests while excluding Chinese-built ships.
The move is framed as a response to US fees on Chinese vessels, with Washington asserting those measures support American shipping companies. This tit-for-tat has added to geopolitical uncertainty, a common catalyst for short-term weakness in risk assets like crypto.
Market participants are also watching US Federal Reserve Chair Jerome Powell’s remarks later today. Traders will search for clues about upcoming monetary policy decisions, though near-term guidance may be limited: there have been few major economic releases recently amid the ongoing US government shutdown, and it remains unclear whether the Fed will cut interest rates this month.
Technical picture: SOL vulnerable to further losses amid bearish momentum
On the 4-hour chart, SOL/USD shows a clear bearish bias after several weeks of underperformance. The token dropped nearly 20% over the past weekend, retesting the $170 area for the first time in weeks.
SOL staged a brief rebound on Monday, climbing to about $213, but it failed to sustain that momentum and has since fallen below $200. This suggests the possibility of further downside pressure in the near term.
If the correction continues and SOL breaks the daily support around $192.74, the next likely target could be the recent weekend low near $171. The Relative Strength Index (RSI) sits around 48, indicating bears still hold the edge, and the MACD remains in bearish territory, which supports the case for additional downward movement in the short term.
Conversely, if buyers regain control, SOL may retest Monday’s high near $213. A successful move above that level could open a path toward the $221 trend-line resistance in the coming hours or days. For now, traders should monitor key support and resistance levels and remain attentive to geopolitical developments and Federal Reserve commentary that could influence market direction.