The original Solana symbol, Sol, has decreased by approximately 12.75 % in the past 24 hours to the lowest level in three weeks at $ 112.50 on April 3.
Daily Sol/USD. Source: TradingView
The main drivers are behind the sharp Sol correction:
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The last round of definitions from the Trump administration and its ability to erase trillion dollars from the stock market.
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Sol negative basis and financing rates.
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Multiple technical factors.
Let's check these stimuli in detail.
Trump's tariff Solana and the broader encryption market
Solana fell in the wake of US President Donald Trump's tariff on April 2, “Tahrir Day”. The escalation of commercial tensions of investors to move away from the most dangerous assets, including cryptocurrencies such as Sol, in favor of the safer investments.
Sol/USD opposite Total Crypto Market Cap and Nasdaq Composite Daily Performance. Source: TradingView
Related to: Trump's tariff “Liberation Day” creates chaos in the markets, and the fears of stagnation
The recent drop prices of Sol are closely related to the dull demand in the future contract market, as it is clear from the sharp decline in the annual basis for the contracts for a period of three months.
The basis of annual rotation shows the extent of the trading of future (or less) contracts compared to the current immediate price, which is expressed as an annual ratio.
A large basis means that futures contracts are circulating significantly, indicating upward expectations and strong demand for long situations learned. On the other hand, the low or negative basis means that futures are trading near or less than the immediate price, indicating that there is no more speculative interest or increased hybrid morale.
The foundation of the Sol Futures Pearch in mid -November 2024 was 18 % and was less than 0 % as of April 3, indicating that the merchants no longer pay the Sol.
The future Solana is a rolling annual basis. source: Glass
Solana financing rates turn negative
The low price of Solana is in line with low financing rates, indicating twice the momentum of the market.
Weekly financing rates for Soul slid To -0.0462 on April 3 of 0.14 % a day ago, this negative financing means that short traders are paying long, highlighting the expectation of more negative aspect.
Sol Oi RoiedNted rates. Source: Coinglass
Currently, the Sol daily scheme shows a pattern of bear science, a process in which it confirms the successive landfills and payment of prices.
As of April 3, Sol was traded less than the lower direction line of the flag, as a decrease in the price was offered to 96 dollars.
Daily Sol/USD. Source: TradingView
This article does not contain investment advice or recommendations. Each step includes investment and risk trading, and readers must conduct their own research when making a decision.