The decline came after a wave of profit-taking, following initial optimism around President Trump’s U.S. Crypto Strategic Reserve announcement on Mar. 2. Solana sol1.44%Solana surged to $179, before plummeting to $130 as the market reacted to Trump’s confirmation that tariffs on Canada and Mexico will take effect on Mar. 4.

Despite the volatility, Solana’s DEX sector remains strong. According to DeFiLlama data, Solana topped DEX volume for the fifth consecutive month, hitting $109 billion, which was 24% higher than Ethereum eth-0.56%Ethereum. Even though the memecoin trading market has cooled, platforms like Raydium ray4.13%Raydium, Meteora, and Orca are still driving huge trading volumes.

On the technical front, the 9-day EMA is acting as resistance, indicating bearish momentum. Support is located at $136, while key resistance levels are at $150.05, $166.32, and $179.01. At 39.65, just above oversold zone, the relative strength index indicates the possibility of a brief recovery.

Although there has been a spike in trading activity recently, the overall trend is still downward. SOL may try to recover toward $166 if it breaks above the $150 level. However, it could drop further if current support is not maintained.

Meanwhile, FTX’s bankruptcy estate seems to be preparing to offload large amounts of SOL, adding uncertainty to the market. According to recent transactions flagged by on-chain analytics firm Lookonchain on Mar. 4, an FTX-linked address unstaked 3.03 million SOL ($431.3 million), transferring 24,799 SOL ($3.38 million) to Binance.

On Mar. 5, another 58,964 SOL ($8.52 million) was deposited. With ongoing selling pressure from FTX and broader market volatility, traders are watching closely to see if Solana’s recovery can hold.