The price of Solana has dived by 14% in the past 24 hours, falling to $136 as the broader crypto market slides 9.5% today.
This steep plunge comes after US President Donald Trump confirmed yesterday that planned tariffs against Canada, Mexico and China were going ahead, and after China and Canada retaliated with tariffs of their own.
The fall also comes after Trump’s crypto and AI advisor, David Sacks, confirmed he had dumped all of his Solana (and Bitcoin and Ethereum) holdings prior to taking his position on January 20.
While this could equal a large amount of Solana, Sacks’ trade didn’t seem to hurt the SOL price at the time, with the coin more dependent on an improvement in global economic conditions for its recovery.
Trump’s Crypto Czar Dumps All Bitcoin & Solana Holdings – Time to Panic?
Responding to a Financial Times article which broke the news, Sacks confirmed yesterday that he and his firm, Craft Ventures, have sold their SOL, BTC and ETH.
A sale of holdings may seem bearish at first glance, but the real issue with Sacks and his holdings is that they may impose a conflict of interest on Trump’s crypto tsar.
That is, his prior holdings in Solana, Bitcoin and Ethereum may have motivated him to propose policies for his own benefit, and for the benefit of his portfolio.
Ridding himself of his crypto is therefore a good step, although as you can see from the X context above, his firm still invested in Bitwise, which operates a Bitcoin ETF, an Ethereum ETF, and which has filed to list a Solana ETF (and also a joint Bitcoin-Ethereum ETF).
As such, there arguably remains a conflict of interest, although you could also argue that this is good for crypto, since it may encourage Sacks – and by extension Trump – to push crypto-friendly policies.
Yet you wouldn’t notice this judging by today’s Solana chart, which shows the altcoin continue to struggle with very low momentum.
Source: TradingViewIts 30-day average (orange) is dropping further below the 200-day (blue), while its RSI (purple) has fallen below 40 again after a temporary bounce yesterday.
Solana has now been in an oversold position for just over a month, a judging by previous dips it should be rebounding very soon.
However, with a trade war now potentially starting, it may end up being several months before we see consistent rallies.
Assuming that Trump steps back from the brink and potentially negotiates the removal of tariffs, we could see the Solana price return to $200 in the next quarter, and hit $300 by Q4.
New Alts Can Help Reduce Impact of Bear Market
As weak as Solana looks right now, there are options for traders if they want to make above-average profits.
There are several newer alts that look particularly promising, including a handful of presale tokens that already raised big amounts, suggesting that they could rally big once they list.
One of these is Solaxy (SOLX), a Solana-based layer-two network that has now raised a very bullish $24.8 million in its ICO.
Solaxy is the market’s first fully fledged Solana L2, and as such it will provide Solana users with lower fees and faster transaction speeds.
It will help reduce the delays and dropped transactions that can still impair Solana’s performance, while it will also enable instant bridging between itself and its parent chain.
Compatibility with other chains will also come over time, giving it a wide reach and potentially making it a major hub for meme tokens and DeFi.
While its sale will end soon, you can still buy SOLX early by going to the Solaxy website and connecting a compatible wallet, such as Best Wallet.
SOLX is currently selling at $0.001652, although this price will rise later today and will continue to rise for the duration of the sale.
As such, traders should move quickly, particularly if SOLX rockets upon listing in the next few weeks.
The post Trump’s Crypto Czar Dumps All Bitcoin & Solana Holdings – Should You Be Worried? appeared first on Cryptonews.
