Solana (SOL) faces a tough month as forecasts indicate further price declines throughout March.
Solana's Challenges and Current Situation
According to Polymarket data, the probability of Solana breaking above its all-time high of $300 this month has dropped to just 1% from 9% on March 2. Meanwhile, the cryptocurrency has a 72% chance of falling to $110 from its current price of $118.94.
Factors Contributing to the Decline
Solana's struggles are part of a broader turmoil in the cryptocurrency market. SOL has lost nearly 60% of its value since President Donald Trump took office. This decline is due to a number of factors, including Trump's volatile trade policies with China and allied countries, his pro-crypto stance falling short of industry expectations, and the $1.5 billion hack of the Bybit exchange.
Additional Negative Factors
Solana's reputation also suffered in February when Argentine President Javier Milei introduced the Libra memecoin, launched on the Solana network. The token reached a market value of $4 billion before crashing 80% in an hour, costing investors $1.6 billion in losses. Adding to the uncertainty, Polymarket forecasters have lowered their expectations for Solana's potential inclusion in the newly announced U.S. strategic crypto reserve. The probability of a Solana exchange-traded fund (ETF) being approved in 2025 also fell to 79% from 86%.
Solana faces multiple challenges amid market turmoil and unstable political factors. Forecasts show significant odds against a recovery in the near future.
