Solana Memecoins Face Market Turmoil Amidst $TRUMP 's Tariff Impact

The Solana memecoin sector experienced a sharp decline, plummeting by 24.5% to a total valuation of $8.1 billion on Tuesday. This drop was double the broader crypto market's average loss of 12%. Leading Solana-based memecoins, including Popcat (POPCAT) and Dogewifhat (WIF), bore the brunt of the sell-off, shedding 25% and 21% of their market value, respectively, with a collective $140 million wiped out in just 24 hours. The TRUMP token, inspired by the former U.S. president, suffered the most extreme downturn, tumbling 80% from its $12.8 billion peak to a mere $2.5 billion.

This steep decline comes despite Solana's recent momentum, fueled by strategic developments such as its inclusion in Trump's crypto reserves and the CME Group's listing of a Solana futures ETF, which initially strengthened investor sentiment. However, an influx of 11.2 billion $SOL

payments from the FTX estate settlement on March 1 introduced unexpected selling pressure, triggering a widespread downturn across the ecosystem. The resulting 20% drop in $SOL ’s price sent shockwaves through its memecoin sector, intensifying the broader market retreat. The downward spiral deepened following Trump's announcement of new tariffs on Canada and Mexico, causing panic selling that erased $2 billion from Solana memecoins within a day.

From a technical standpoint, POPCAT's price action signals potential further losses after failing to reclaim the $0.25 resistance level. Currently trading at $0.22, the token struggles to maintain support, with its lower Keltner Channel band at $0.18 acting as the next critical level. If bearish momentum persists and the $0.18 support is breached, traders may see a deeper retracement towards $0.15. Market participants now await a potential reversal, with short sellers eyeing opportunities unless bulls regain control at key resistance levels.

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