SOLUSD SOL/USD

Solana (SOL) is down 4.7% to $179.40 this week, underperforming the broader crypto market, where Bitcoin (BTC) gained 1.7% to $98,470. The decline follows the LIBRA memecoin scandal, which has cast a shadow over Solana, the blockchain on which LIBRA was launched.

Argentine President Javier Milei is facing fraud allegations after promoting LIBRA, claiming it would fund small businesses and startups. Following his endorsement, LIBRA skyrocketed by 4,000% on February 14, only to collapse by 95% after early investors reportedly took $100 million in profits. Milei later deleted his post and admitted to making a mistake, with some opposition politicians even considering impeachment proceedings.

Nevertheless, Solana maintains strong institutional backing. Franklin Templeton actively uses Solana in its operations, while Bank of America has compared Solana’s speed and efficiency to Visa in the cryptocurrency space. The blockchain continues to see growing adoption, though its rapid expansion brings increased risks.

SOL briefly dropped 20% earlier this week, hitting a low of $160.82—the lowest since November 5, 2024, before the Trump-driven rally began. Prices have since recovered, but SOL must reclaim $175.00 to sustain a move toward its $225.00 target. Failure to do so could see a further decline to $125.00, which would likely present a strong buying opportunity.