Oversold Altcoins Like Solana Flash Bullish Signals Today

Solana Price

Solana has been performing exceptionally well as one of the best altcoins throughout the last year. But recently, heavy clouds have come over it, and it has dropped by over 60% from its recent all-time heights. Be as it may, it is not the first case for this coin — it comes with fear of a global economic slowdown, fueled by a sudden escalation in US tariffs by Donald Trump. As all of the macroeconomic uncertainties roil markets, altcoins such as Solana will usually be the most hit — thus, making traders and analysts vigilant for signs of short-term rebounds.

Trump’s Tariff Bombshell Rocks World Markets

On April 2, 2025, President Trump sent shock waves across the globe with a single announcement: sweeping new tariffs on nearly all imports into the United States. Some analysts have dubbed this as Liberation Day, marking one of the most hard-hitting policies in recent trade policy. The average trade-weighted U.S. tariff rises from 2% to 24%, the highest since the 1930s.

The very instant that those tariffs got announced, panic hit the markets for risk assets. Equities nosedived, with the S&P 500 plunging by 2.8% on the day of the announcement, and commodities witnessed steep declines. The cryptocurrency market, a so-called risk-on sector, was not an exception. Bitcoin (BTC) plunged by 10%, while Ethereum dropped more than 15%; Solana faced one of the most horrifying drops, crashing downwards by 19% within 24 hours.

Solana’s Freefall — A Fall of 60% from the All-Time Highs 

The recent collapse of Solana aptly puts on display how much altcoins are still grounded to the global macroeconomic realities. A few weeks back, SOL had been trading well over $150, buoyed by a wider adoption, institutional interest, and increased DeFi activity on the Solana blockchain. Now, it has fallen to around $104, trying to hold the all-important $100 support level. 

The speed and intensity of the sell-off have been particularly disturbing. The break from below $120 last week signified a big shift in sentiment, and over the weekend, SOL descended another 20%, a fact that is a part of broader market capitulation. These waves of selling came in addition to the continuously growing fear that tariffs may lead to a long-term trade war, limiting the global economy and investor confidence.

Analyst Commentary: Bluntz Calls for a Relief Bounce

Some analysts are starting to see faint glimmers of hope amid the ongoing selloff just now. One of the louder voices is that of crypto trader and market analyst Bluntz, who shared the latest in his on-the-go take on the social media platform X (formerly Twitter). He believes that several of the drastically oversold altcoins, including Solana, show bullish divergence, which is a technical pattern commonly preceding a rebound.

Bluntz states, “A lot of these tokens have gone down in a straight line – that’s usually when you want to start looking for bounce plays.” He also cited several oversold assets, such as Solana and HYPE, as some he had begun bidding on with expectations of ”sizeable bounces in the next few sessions.

But Bluntz warns this may not put in the ultimate market bottom. Rather, the analyst marks this bounce as a short-term relief rally against the greater downtrend. Traders are therefore advised to stay alert and manage their risk properly.

$100 Level Becomes Solana’s Last Line of Defense

Technical analysis shows that Solana sits on one of its most important junctures at the moment. The $100 price level is not just a round number but the most well-known historical support level. The bullish divergence thesis might be vindicated, which would potentially catalyze a quick recovery bounce, if SOL were to reclaim the area, and remain above the zone.

Analysts warn that should bears be able to push the price below 100 decisively, expectations will have to shift to a much deeper retracement, targeting that $80-$85 range, which is also where the next significant demand zone is. But this scenario would end up even more painful for holders and probably will take longer in the recovery phase, especially in a weak macro environment.

Broader Economic Headwinds Weigh on Risk Assets

Never think that the sell-off of Solana occurs in isolation; the macroeconomic scenario has turned particularly gloomy in the past weeks. Financial heavyweights such as Larry Fink (BlackRock CEO) and Jamie Dimon (JPMorgan CEO) have waved red flags talking about stagflation and even a U.S. recession possibility.

As doom and gloom hang on the macro scene, investor Bill Ackman likened Trump’s tariffs to “economic nuclear war,” warning that they could have the effects of slowing growth, raising prices, and destabilizing world trade. Such macro headwinds have engendered a risk-off sentiment across the markets, recently prompting the liquidation of positions in equities and techs, as well as high beta assets like altcoins.

Liquidity Zones and Short-Term Price Action

The price action shows that Solana is now in a very critical liquidity zone, which is between $100 and $110. This area has witnessed huge buying and selling sessions in which the bulls are trying to defend themselves while bears are testing new lows.

From on-chain metrics and order book data analysis, breaking down the $100 level would very likely trigger stop-loss orders, therefore immediately cascading towards the $80-$85 range. However, maintaining the level and regaining $110 could trigger a short-covering rally back towards $120-$130.

The next 48-72 hours are, therefore, very consequential for where Solana turns short-term. Traders are closely watching for volume confirmation, reversal candles, and further divergence signals to identify high-probability entry points.

Relief Rally or More Pain Ahead?

The significant decline of Solana has followed the more expansive drop by risk assets owing to rising trade tensions and macroeconomic implications. Amidst all the chaos, signals such as bullish divergence and overselling provide a flicker of hope to traders.

Whether this would bring about a significant relief bounce or a case of a continued downtrend would remain to be seen. All attention now rests on the support level at $100; this is a critical area that would have a say when it comes to judging Solana in the days to follow. Reader investors will be advised to remain alert with an eye on both charts and the headlines and to position accordingly in a still uncertain, volatile market environment.