Solana's token value declines by 3.27%, reaching $171, in the wake of controversy surrounding Trump's memecoin.
Solana's Fifth-Largest Ranking Threatened Amidst Trump MemeCoin Controversy and Volatility
On May 25, 2025, Solana (SOL) encountered a 3.27% decline to $171.07, retracing from a brief spike above $181 due to the Trump MemeCoin controversy. In spite of this downturn, SOL still saw a 7% weekly increase and a 16.9% surge over the last 30 days.
Whale activity and liquidation data suggest bearish pressure on Solana. Long liquidations totaled $6.1 million, while short liquidations were limited to $326K. Binance witnessed $2.76 million in long liquidations, indicating cooling market conditions or a potential trend reversal.
Worth noting, a substantial whale withdrew $3.53 million worth of SOL, subsequently staking most of it, indicative of long-term conviction in Solana's future prospects.
Resistance has proven challenging for Solana, as the token struggled to break past $193, with spot outflows of $158.93 million exceeding inflows of $141.42 million.
Technical analysis indicates that SOL has broken below its ascending channel and the 50-day moving average at $174.56, with a bearish crossover on the MACD indicator, implying selling pressure.
In broader market sentiment, bullish sentiment persists due to Solana's reputation for high throughput and low transaction costs. Analysts have set a short-term price target of around $182 by the end of June, while Standard Chartered has a year-end target of $275.
On-chain activity remains robust, driven primarily by decentralized exchanges and trading applications. While such activity demonstrates Solana's capabilities, it raises questions about long-term revenue sustainability.
This encounter with the Trump MemeCoin controversy has emphasized Solana's potential vulnerability to speculative risks and short-term volatility. However, its strong fundamentals and positive price forecasts sustain a bullish outlook for the cryptocurrency.
Investing in Solana amidst the Trump MemeCoin controversy and market volatility is complex, given the bearish pressure suggested by whale activity and liquidation data. However, the cryptocurrency's technological advancements, high throughput, and low transaction costs continue to fuel medium to long-term investing prospects, with analysts forecasting a price of around $182 by the end of June and $275 by year-end.
