Solana Price’s Epic Fall, Can Pump.Fun Fuel Rebound?

The new week looks gloomy as Solana (SOL) price and other cryptocurrencies record a free fall. The Trump tariff drama has taken over not just cryptocurrencies and altcoins but traditional finance markets as well.

SOL has lost 16.27% of its value to trade at $100.32 , showing more than a 40% drop in value over the past year. Solana price owing to bearish pressure has continued to sink in tandem with the larger market and BTC price action.

This plunge has led the coin to lose its position as the fifth-largest cryptocurrency by market capitalization to Binance Coin (BNB). As Solana sat on the 7th spot by market cap, it showed SOL had lost its market share amid the bear market blues.

Solana Price Market Outlook

Before resting at its current price, Solana fell as low as $96.58, marking the first of such drop since February 2024.

At press time, SOL is the seventh-largest cryptocurrency per market data, with $52.21 billion in valuation.

Solana’s major decline below the psychologically important $100 mark comes amid a major market sell-off in risk assets. This selloff was triggered by trade tensions between the United States and its core trading allies.

According to market data, Solana’s 24-hour trading volumes have increased by 290%. This suggests that traders and investors remain in the market despite the general uncertainty.

Insights from CoinGlass data show that over $64 million worth of long positions on SOL have been liquidated within the last 24 hours.

Other metrics are flashing downtrend as broader ecosystem sentiment shows fear. On a 4-hour SOL price chart, the Bollinger Bands suggest heightened volatility and an oversold condition.

They are expanding downward while the price deviates below the lower band. Based on the current outlook, the coin could see a short-term bounce.

Source: TradingView

Its RSI and MACD indicators show oversold conditions amid a wide bearish crossover.

Pump.Fun Livestream Relaunch and Implication

The bearish trend is an industry-wide problem, especially with Bitcoin (BTC) going below $77,000.

Altcoins like Ethereum (ETH) also dropped below $1,500, and Dogecoin (DOGE) trading at $0.1385 following a 15.63% profit loss.

However, analysts and market observers are optimistic that Solana’s price may stage a recovery in no time. They have based their optimism on the future of Pump.Fun, the popular Solana memecoin launchpad.

Notably, Pump.Fun recently restored its livestream feature to its platform. It initially suspended this service five months ago due to some community misuse.

After implementing some content moderation rules, it is now gradually rolling it out, making it available to 5% of its users.

Alon Cohen, Pump.Fun co-founder says it is part of a limited rollout to test the revamped system.

He acknowledged that this feature has returned with stronger moderation tools and “transparent guidelines” in place.

This amendment is expected to catalyze a SOL price uptick in the next few days if memecoin trading picks up pace.

Major Solana Events that can Reshape Sentiment

Aside from the rebranding of the Pump.Fun platform, a few events, and partnerships could also increase the SOL price .

Colosseum launched the Solana Breakout Hackathon, with submissions due by May 16th.

Financial service providers PayPal and Venmo recently made it possible for users to buy, hold, sell, and transfer directly into their accounts.

This move reflects the payment giants’ continued push into the cryptocurrency space.

Other key events include introducing the Solana Policy Institute, XNET_Mobile’s partnership with AT&T to expand wireless access, and the Superteam Korea Seoulana Hackathon, which kicked off a few months back.

All these are potential catalysts that may fuel the price of SOL moving forward. Nonetheless, in a market like the current one it would be difficult to expect rapid and sustained recovery. Traders and investors seem to be acting cautiously for now.