Why is the price of Solana down today?

Key takeaways:

• Solana dropped over 4.5% after X banned Pump.fun and related memecoin accounts, weakening retail momentum.

• The escalating Israel-Iran conflict and Trump’s G7 remarks triggered a broader flight from risk assets.

• SOL is trading within a bearish descending triangle, risking a 25% drop.

Solana’s native token, SOL (SOL), has dipped by over 4.50% in the last 24 hours to reach around $150 on June 17.

Among the top catalysts driving the SOL price lower is the ban on the Solana-based memecoin launchpad Pump.fun and a lower appetite for risk-assets amid the ongoing Middle East conflict.

Let’s examine these factors in detail.

Pump.fun ban on X sparks Solana memecoin sell-off

One of the most immediate catalysts behind Solana’s decline is the unexpected suspension of Pump.fun from X, the primary platform for launching and promoting Solana-based memecoins.

The ban, which occurred on June 16, removed the X accounts of Pump.fun, its co-founder, Alon Cohen, and several high-profile meme projects, including GMGN and ElizaOS.

Pump.fun had become a major driver of onchain activity and speculative momentum on Solana, with thousands of memecoins launching through the platform over the past few months.

Its sudden blackout has removed a key engine of retail engagement, triggering sell-off across the Solana memecoin sector and SOL.

Lower risk appetite hurts SOL price

Solana’s price action has become jittery amid the escalating conflict between Israel and Iran, following a broader risk-on sentiment.

Related: Bitcoin closer to equities than gold as Middle East war deepens

For instance, today’s SOL price decline has occurred alongside drops across the major US stock indexes after US President Donald Trump played down the likelihood of a ceasefire at the G7 summit.

Geopolitical escalations often lead to a flight to safety, with capital moving into US dollars or gold. In contrast, more speculative tokens—especially those heavily linked to retail-driven narratives—tend to take the biggest hits.

Solana’s descending triangle hints at 25% drop

Technically, Solana is forming a descending triangle, a structure often seen as a bearish reversal pattern when it appears after an extended rally or failed breakout.

The triangle shows lower highs pressuring a flat support level around $141, indicating weakening buying momentum. This pattern is developing after SOL’s local top near $210 in mid-April, suggesting a potential shift from bullish to bearish bias.

SOL was rejected near its 50-day exponential moving average (EMA) at around $156, reinforcing short-term selling pressure.

The price is now hovering just above the triangle’s support, with a breakdown increasing the likelihood of a sharp drop toward the $110–$115 area, a target 25% below current prices.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.