Why is Solana (SOL) price down today?

Solana (SOL) has dropped by 7.50% in the last 24 hours to reach around $142 on March 7, mirroring losses across the cryptocurrency market.

Top reasons driving the SOL prices lower today include:

Digital Asset Stockpile fails to impress SOL bulls

Solana’s price tumbled today as crypto markets reacted to President Donald Trump’s executive order establishing a US strategic Bitcoin reserve and digital asset stockpile.

What to know:

• Investors had expected the US government would actively purchase Bitcoin and other cryptocurrencies, but the order specified no new acquisitions beyond assets already forfeited.

• Trump fulfilled his campaign promise to establish a Bitcoin reserve, but it will be comprised of BTC already owned by the federal government.

• The Treasury and Commerce Secretaries may explore “budget-neutral strategies” to acquire more Bitcoin in the future—but without using taxpayer funds.

• The broader Digital Asset Stockpile focusing on altcoins will not include any purchasing of new tokens.

• The US holds approximately $17.7 billion in Bitcoin and $400 million in seven other tokens, mostly seized from civil and criminal cases.

• The government has not revealed any SOL holdings so far, with analysts noting that the amount they hold is likely to be “pretty minuscule.”

Solana’s funding rates flip negative

Solana’s open interest (OI) is decreasing, and its funding rates are negative, which provides insight into why SOL’s price is struggling.

Key points:

• Solana’s OI in the futures market has dripped from its local peak of $8.57 billion on Jan. 17 to $4.03 billion as of March 7.

• OI measures the total number of outstanding futures contracts, and a decrease suggests more traders are exiting positions.

• A declining OI typically means reduced speculative demand, slowing upward price momentum.

• SOL’s weekly funding rates dropped to -0.20% on March 7, three months after peaking out at 1.37%.

Solana price eyes another 25% drop

SOL has fallen by more than 50% since establishing its record high of around $295.30 in January — and it appears there’s more room to decline in the coming weeks.

Key points:

• SOL price is correcting inside what appears to be a falling wedge, a classic bullish reversal pattern, but confirmation is needed.

• $106, down 25% from the current price levels, appears to be a key downside target for Solana.

• The level aligns with the 0.382 Fibonacci retracement, 200-week exponential moving average (200-week EMA; the blue wave), and wedge apex.

• The Relative Strength Index (RSI) at 42.03 signals further downside potential before reaching oversold conditions.

• Trading volume remains weak, indicating lower buying interest.

• A break above the wedge’s upper trendline may weaken SOL’s risks of declining toward $106, instead sending the price to a level at a length equal to the wedge’s height.

Related: Solana DEX volumes still rival Ethereum’s despite memecoin meltdown: VanEck

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.