Solana’s SOL Price Dips Amid Regulatory Crackdown and Geopolitical Tensions
Last Updated: June 17, 2025
Key Takeaways
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Solana dropped over 4.5% following X’s ban of Pump.fun and related memecoin accounts, denting retail momentum.
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The intensifying Israel-Iran conflict and President Trump’s muted G7 ceasefire remarks triggered broader risk aversion.
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SOL trades within a bearish descending triangle pattern, with potential downside towards $110-115.
SOL Hits 4.5% Decline, Trading Near $150
Solana’s native token, SOL, experienced a notable dip, falling over 4.50% in the last 24 hours and reaching approximately $150 by midday on June 17.
The price slide occurred against a backdrop of broader market nervousness, highlighting persistent headwinds.
Pump.fun Ban Sparks Sell-Off
A primary catalyst for the price drop was the unexpected suspension of Pump.fun, a prominent Solana-based memecoin launchpad.
On June 16, X removed the accounts of Pump.fun and its co-founder, Alon Cohen, along with several high-profile memecoins including GMGN and ElizaOS.
Pump.fun had been instrumental in driving on-chain activity and speculative interest in the Solana ecosystem, facilitating thousands of memecoin launches. Its sudden blackout removed this key engine of retail engagement, triggering a sell-off across the Solana memecoin sector and contributing to SOL’s decline.
Broader Risk Aversion Weights SOL
Solana’s price action intensified alongside a broader risk-off sentiment, particularly in the wake of:
The escalating conflict between Israel and Iran significantly impacted market sentiment. This, combined with President Trump’s downplaying of ceasefire prospects at the G7 summit, contributed to a sell-off in major US stock indexes, which correlated closely with SOL’s decline.
Geopolitical uncertainty frequently prompts investors to seek safer assets like the US dollar or gold, often resulting in capital flight from highly speculative assets, such as cryptocurrencies with retail-driven narratives.
Technical Indicators Signal Continued Decline
Solana is forming a bearish descending triangle pattern, often interpreted as a potential reversal signal after an extended move.
This pattern is characterized by progressively lower highs while the support level near $141 remains relatively stable.
Developing after SOL’s local peak near $210 in mid-April, the descending triangle suggests a potential shift from bullish to bearish momentum.
SOL encountered resistance near its 50-day exponential moving average (EMA) around $156, adding to the short-term downward pressure.
The token now trades near the lower boundary of this pattern. A breakdown below support could trigger a sharp decline towards the $110–$115 region, representing a potential 25% drop from current levels.
