Solana (SOL) Faces Selling Pressure Amid Market Turmoil – What’s Next?

Solana (SOL) is under intense selling pressure, struggling to hold key support levels as the broader crypto market remains in distress. Since March began, SOL has plunged over 37%, reflecting a risk-off sentiment across global markets.

Read SOL Price Prediction for more detailed insights 

Market Uncertainty Weighs on SOL

The downturn isn’t isolated to crypto. Trade war fears and macroeconomic uncertainty have driven both the crypto and U.S. stock markets to their lowest levels since late 2024. Investor confidence has deteriorated, leaving SOL vulnerable as it fails to reclaim critical price levels.

Despite the bearish trend, some analysts see a potential reversal. Crypto analyst Ali Martinez pointed out that Solana is forming a textbook cup-and-handle pattern, a bullish technical setup. If this pattern plays out, SOL could recover and reclaim higher levels.

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Solana Validators Reject SIMD-228 Proposal

Adding to the recent volatility, Solana validators recently voted against SIMD-228, a proposal by Multicoin Capital to change the network’s inflation model. The vote, which saw participation from 910 validators and 74% of the staked SOL supply, was the largest governance vote in crypto history.

The proposal aimed to shift Solana’s fixed inflation schedule (currently 4.7% annually) to a dynamic system based on staking levels. Supporters argued this would stabilize SOL’s price and boost adoption in DeFi. However, opponents feared it would harm decentralization by reducing staking rewards, potentially pushing smaller validators offline.

What’s Next for Solana?

For now, Solana must overcome key resistance levels before confirming a bullish trend. If market conditions improve, SOL could see renewed momentum. However, failure to hold current support could result in further downside. The coming weeks will be crucial in determining Solana’s short-term direction.