Solana’s SOL token slips 5% following a drop in memecoin trading volume on the network.

Solana’s SOL Drops 5% Amid Cooling Memecoin Trades and Market Volatility

Solana’s native token SOL fell approximately 5% on Saturday, retreating from recent highs as activity on the network’s memecoin segment slows down. The dip comes amid a broader crypto market pullback influenced by escalating U.S.-China trade tensions and cautious investor sentiment.

After hitting a peak near $163 early in the day, SOL slipped to around $154.50 during afternoon trading, marking a notable pullback. Analysts point to a decline in memecoin transaction volumes on Solana’s blockchain as a key factor behind the softening price momentum.

Memecoin projects on Solana, which had fueled significant network usage and investor enthusiasm earlier this year, have seen reduced trading volumes since mid-April, diminishing their impact on SOL’s price dynamics.

Meanwhile, Solana Labs recently launched the Solana AppKit, a comprehensive mobile development suite designed to simplify dApp creation with integrated support for popular wallets and decentralized finance platforms. The toolkit aims to drive developer activity and user engagement, though its effect on token price remains to be seen.

From a technical perspective, SOL’s price now faces resistance near $160, with support levels forming between $152 and $155. The token’s weakening relative strength against Ethereum signals increased selling pressure, though buyers have shown interest around $154.

Market watchers note that without renewed catalyst beyond memecoin hype, SOL may face continued volatility. However, sustained support at current levels could pave the way for a recovery if broader market conditions improve.

Technical Highlights:

• SOL declined 5% within 24 hours, trading between roughly $163 and $154.
• Strong resistance at $160–$162 zone remains a hurdle.
• Support emerging at $152–$155 could stabilize near-term price.
• Price momentum indicators hint at bearish trend continuation.
• A rebound attempt at $154 may signal temporary relief for bulls.

With traders eyeing upcoming developments, the next several days will be critical for SOL’s trajectory in a turbulent market.

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