Solana Revenue Growth Story Overshadowed by Tariff-Induced Market Selloff as SOL Tests $183 Support
Rebeca Moen Nov 03, 2025 02:45
SOL price drops to $183.81 amid broader crypto liquidation cascade triggered by tariff announcements, despite reporting 30x faster revenue growth than early Ethereum.
Quick Take
• SOL trading at $183.81 (down 0.9% in 24h) • Tariff announcement triggers crypto-wide selloff despite positive Solana fundamentals • Testing critical support above 200-day moving average at $179.78 • Following Bitcoin's weakness amid risk-off sentiment in traditional markets
Market Events Driving Solana Price Movement
The SOL price has been caught in a broader cryptocurrency liquidation cascade following former President Trump's announcement of 100% tariffs on Chinese imports earlier this week. This macroeconomic shock has overshadowed what would otherwise be considered highly bullish news for the Solana ecosystem.
Despite the revenue milestone announced on October 30th showing Solana's annual revenue reaching $2.85 billion - growing 30 times faster than Ethereum's early stages - the SOL price has struggled to maintain momentum above $190. The tariff-induced market volatility has created what analysts describe as a "liquidation cascade" that has affected all risk assets, including cryptocurrencies.
The delayed SEC approval of Solana ETFs from major asset managers including Bitwise, 21Shares, and Franklin Templeton has added to near-term uncertainty, though analysts maintain a 90-95% probability of eventual approval. This regulatory delay has removed a potential positive catalyst that could have helped SOL price weather the broader market storm.
SOL Technical Analysis: Testing Key Support Confluence
Price Action Context
SOL price currently trades below all major short-term moving averages, with the 7-day SMA at $188.26 and 20-day SMA at $189.34 acting as immediate resistance. However, the token remains above its crucial 200-day moving average at $179.78, suggesting the longer-term uptrend remains intact despite recent weakness.
The Solana technical analysis reveals a market in consolidation mode, with SOL price trading within its Bollinger Bands and showing a %B position of 0.2376, indicating proximity to the lower band without a decisive breakdown.
Key Technical Indicators
The daily RSI at 41.55 sits in neutral territory but approaching oversold levels, potentially setting up a bounce scenario. The MACD histogram shows a slight bullish divergence at 0.2131, suggesting selling pressure may be waning despite the negative MACD reading of -4.9783.
Stochastic indicators (%K at 23.93, %D at 31.52) signal oversold conditions, typically indicating potential reversal opportunities for short-term traders.
Critical Price Levels for Solana Traders
Immediate Levels (24-48 hours)
• Resistance: $189.34 (20-day moving average and psychological level) • Support: $179.78 (200-day moving average and crucial trend support)
Breakout/Breakdown Scenarios
A break below the $179.78 support could trigger a deeper correction toward the $174.06 level, potentially reaching the stronger support zone at $168.79. Conversely, reclaiming $189 would target the $208.91 resistance level, where the 50-day moving average currently sits.
SOL Correlation Analysis
• Bitcoin: SOL price is following Bitcoin's weakness closely, with both assets struggling under macroeconomic pressure from tariff concerns • Traditional markets: High correlation with risk-off sentiment affecting both crypto and equity markets • Sector peers: Performing in line with other Layer-1 tokens, suggesting sector-wide rather than Solana-specific selling pressure
Trading Outlook: Solana Near-Term Prospects
Bullish Case
The fundamental backdrop remains strong with record revenue growth and pending ETF approvals. A successful defense of the $179.78 support, combined with any improvement in macro sentiment, could trigger a sharp reversal toward $200+. The oversold technical readings suggest limited downside risk at current levels.
Bearish Case
Continued macro headwinds and a break below 200-day moving average support could extend the correction toward $168-170. Any escalation in trade tensions or broader crypto market liquidations remain key risks to monitor.
Risk Management
Conservative traders should consider stops below $178 to protect against a breakdown of key technical support. Given the current daily ATR of $11.33, position sizing should account for continued elevated volatility in the near term.
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