Solana Rebounds as Tariff Discussions Flood Crypto Social Media

Source: CryptoNewsNet Original Title: Solana Rebounds as Tariff Discussions Flood Crypto Social Media Original Link: Overview

SOL, the native cryptocurrency of Solana ecosystem, witnessed a nearly 3% increase during Wednesday’s U.S. market hours to trade at $130. The buying pressure aligns with broader market relief rally following geopolitical developments. The momentum indicator RSI at 44% accentuated a neutral to bearish sentiment among market participants.

Crypto Tariff Talks Surge as Trade Policy Shifts

Cryptocurrency communities have experienced the highest number of discussions on tariffs over the last three months, according to activity on platforms such as X, Reddit, and Telegram. The surge is directly linked to geopolitical developments over U.S. trade policy.

Recently, a significant development emerged when trade tensions were de-escalated, with tariff threats on eight European countries being withdrawn. The decision followed diplomatic negotiations at international forums. Their purpose was to initiate these measures at 10 percent on February 1 and at 25 percent on June due to disagreements over specific geopolitical matters.

The cryptocurrencies responded with price increases, with Bitcoin temporarily rising to above 90,000 after falling amid earlier uncertainty. The action followed a trend of the last few months: the more tariffs are mentioned, the more the market falls, sometimes leading to short-term recoveries and additional declines based on the overall tone.

The online crypto discussions surged during the tariff-related headlines as a sign of persistent sensitivity to geopolitical policy changes and their subsequent impact on digital assets.

Solana Price Poised for 8% Drop Before Major Support Test

Over the past week, the Solana price witnessed a notable drawdown from $148.7 to $130, registering a loss of 15.8%. This pullback shows a second reversal from the $147 resistance area for the second time in two months, signaling a potential sideways trend in the market.

The price consolidation between $147 and $168 accentuates market uncertainty and lack of initiation from buyers or sellers.

Despite an intraday gain, the exponential moving average 20 and 50 could act as headwind against buyers and revert the price to lower level. If the bearish momentum persists, the SOL coin will plunge 8.42% and retest a long-coming support trendline at $119.

Since February 2024, the ascending triangle has acted as an active accumulation zone for buyers to recoup their bullish momentum. If the support holds again, the Solana price could rebound fast and challenge the overhead trendline.

The descending trendline acts as the key dynamic resistance that carries the current downtrend in SOL. A potential breakout from this barrier will be key to drive a sustainable recovery in price.