Solana (SOL) has faced intense selling pressure, recently dropping below $120 – its lowest level since February 2024. It has declined more than 38% over the past 30 days, reinforcing its bearish momentum.
With sellers firmly in control, SOL now faces a critical test of support levels, while any potential recovery would need to break through key resistance zones to signal a shift in momentum.
Solana Ichimoku Cloud Shows a Strong Bearish Setup
Solana Ichimoku Cloud shows that the price is currently trading below both the blue Tenkan-sen (conversion line) and the red Kijun-sen (base line), indicating that the short-term trend remains bearish.
The price recently bounced from a local low but has not yet reclaimed these key resistance levels. Additionally, the Ichimoku cloud (Kumo) ahead is red, reflecting bearish sentiment in the market.
The cloud itself is positioned well above the current price, suggesting that even if SOL experiences a short-term recovery, it will likely face strong resistance near the $130 – $135 region.
The positioning of the Tenkan-sen below the Kijun-sen further supports the bearish outlook, as this crossover typically signals downward momentum.
For any signs of a trend reversal, SOL would need to break above both of these lines and ideally enter the cloud, which would indicate a potential transition to a neutral phase.
Until then, the bearish cloud ahead and the current weak price structure suggest that any rallies may be temporary before the broader downtrend resumes.
SOL DMI Shows Sellers Are Still In Control
Solana Directional Movement Index (DMI) chart reveals that its Average Directional Index (ADX) is currently at 33.96, a significant increase from 13.2 just two days ago.
The ADX measures trend strength, and a reading above 25 typically indicates a strong trend, while values below 20 suggest a weak or non-existent trend. Given this sharp rise, it confirms that SOL’s ongoing downtrend is gaining strength.
The +DI (positive directional index) has dropped to 11.71 from 15.5 two days ago but has slightly rebounded from 8.43 yesterday. In contrast, the -DI (negative directional index) sits at 32.2, up from 25.9 two days ago, though slightly down from 35 a few hours ago.
The relative positioning of the +DI and -DI lines suggests that sellers are still in control, as the -DI remains significantly higher than the +DI.
The recent dip in -DI from 35 to 32.2 could indicate some short-term relief, but with the ADX climbing quickly, it reinforces that the prevailing downtrend remains intact.
The slight bounce in +DI suggests minor buying pressure, but it’s not enough to shift momentum in favor of bulls. Until +DI rises above -DI or ADX starts declining, SOL’s bearish trend is likely to persist, with sellers dominating price action in the near term.
Will Solana Fall Below $110?
Solana Exponential Moving Average (EMA) lines continue to depict a bearish trend, with the short-term EMAs positioned below the long-term EMAs.
This alignment suggests that downward momentum remains dominant, even though the price is currently attempting a recovery. If this rebound gains strength, Solana’s price could face resistance at $130 and $135, key levels that must be cleared for any potential trend reversal.
A successful break above these resistances could push SOL toward $152.9, a significant level that, if breached with strong buying pressure, might pave the way for a rally toward $179.85 – the price level last seen on March 2, when SOL was added to the US crypto strategic reserve.
However, if the bearish structure remains intact and selling pressure resumes, Solana could retest the $115 and $112 support levels, both of which have previously acted as key price floors.
A failure to hold these supports could open the door for a deeper decline, possibly pushing SOL below $110 for the first time since February 2024.
Given the EMAs’ current positioning, the downtrend remains in control unless Solana reclaims key resistance levels and establishes a bullish crossover, signaling a shift in market sentiment.
Robinhood Markets reported its first quarter (Q1) earnings on Wednesday, revealing commendable growth over the past several months.
The development adds to Robinhood’s list of bullish developments this year after the US SEC (Securities and Exchange Commission) dropped its probe against the online brokerage platform.
Robinhood Records 100% Q1 Crypto Revenue Growth
Robinhood Markets reported its Q1 earnings on Wednesday, April 30, detailing its financial results for the first quarter of 2025. The platform’s CEO and co-founder, Vlad Tenev, and CFO Jason Warnick led the broadcast, which was shared on X (Twitter) and YouTube.
While Tenev and Warnick had much to say about the brokerage platform’s performance in Q1 2025, the highlight was its crypto revenue between January and April.
Reportedly, crypto revenues doubled to $252 million, marking a 100% increase year-over-year (YoY). In the same tone, crypto trading volumes hit $46 billion, up by 28% YoY.
These are notable feats given fierce competition from centralized exchanges like Binance and Coinbase.
“We began the year strong with 50% YoY revenue growth and 106% EPS growth, alongside disciplined expense management. We’re also returning capital aggressively with expanded share repurchases, signaling confidence in our long-term growth,” said Warnick.
Perhaps the recent move by the US SEC to drop its probe into Robinhood exacerbated the financial traction. Despite its May 2024 Wells Notice against the platform, the securities regulator concluded the investigation without penalties.
Robinhood Shares Strategic and Operational Highlights
Beyond financial traction, Robinhood’s Q1 earnings revealed accelerated product innovation on different paradigms, including Robinhood Strategies, Banking, and Cortex. According to Tenev, customers warmed up to the platform’s offerings, adding credence to the platform’s notable Q1 revenues.
“…customers responded with record-breaking net deposits, Gold subscriptions, and trading volume across all asset classes,” Tenev stated.
Among the innovations presented, comprising strategic and operational highlights, is a Bitstamp acquisition in the pipeline, expected to close mid-2025. BeInCrypto recently reported details of the acquisition, citing a $200 million deal.
The acquisition comes as Robinhood looks to enhance its crypto services. Bitstamp brings over 50 active licenses and registrations worldwide. With this, Robinhood will integrate a reputable institutional business into its ecosystem.
Beyond the Bitstamp acquisition, Robinhood is also working on global expansion into the UK and EU, positioning itself as a fierce competitor in the crypto space.
Robinhood is also innovating with prediction markets like Kalshi and advanced trader tools, tapping into the growing demand for diverse crypto offerings. Its prediction market has reportedly traded over 1 billion event contracts in six months.
With 25.8 million funded customers and $221 billion in platform assets, Robinhood is becoming a go-to financial hub for crypto-savvy users.
Despite the bullish developments, Robinhood’s HOOD token has only increased by a modest 1% in the last 24 hours. As of this writing, it traded for $0.00003370 on the MEXC exchange against the USDT stablecoin.
Banana (BANANA) has recently seen a price rally, gaining 44% as it attempts to break out of a descending wedge pattern. While this bullish setup suggests the potential for further gains, investors’ behavior could hinder the altcoin’s progress.
Despite the price rise, many investors are reluctant to hold, potentially delaying the breakout.
Banana Gun Faces Selling
Over the past two weeks, the supply of Banana on exchanges has risen by 300,000 tokens, worth just under $5 million. This increase in selling pressure amounts to roughly 9% of the entire market cap, which stands at $55 million. The growing supply on exchanges is a direct result of the altcoin failing to sustain its recovery, pushing many investors to sell and lock in profits.
This increased selling activity points to a highly bearish sentiment surrounding Banana. The failure to recover has triggered a wave of profit-taking, further weighing on the price.
The overall macro momentum for Banana has been marked by a significant spike in active deposits over the past 24 hours, the highest since November 2024. This surge indicates that more Banana tokens are being offloaded, reflecting investor sentiment and profit-taking behavior.
Unlike previous selling periods where investors sought to offset losses, this round of selling appears to be driven by those booking profits. This shift in behavior could signal further selling in the short term, particularly if the price stabilizes or continues to rise.
At the moment, Banana is trading at $15.95 after rising by 44% over the past day, sitting within a descending wedge pattern that typically signals bullish potential. However, despite this setup, the altcoin has struggled to break out in the last 24 hours, leaving its future uncertain.
If the current weak momentum and selling trends persist, Banana will likely test the lower trend line of the pattern. This could push the price down to $10.29, delaying any potential recovery and reinforcing the bearish outlook.
On the other hand, if broader market conditions improve and investor sentiment shifts, Banana could see a breakout from the wedge pattern. Successfully breaching the $17.57 barrier would signal a reversal and could send the price towards $23.24. Such a move would invalidate the current bearish outlook and mark the beginning of a stronger upward trend for Banana.
Since its launch in late March, World Liberty Financial’s stablecoin USD1 has achieved an impressive market capitalization, reflecting strong investor interest. If the creators want to maximize USD1’s reach by accessing markets abroad, particularly in Europe, they must confront MiCA’s extensive compliance list.
In a BeInCrypto interview, experts from Foresight Ventures, Kaiko, and Brickken stressed the importance of stablecoin issuers having substantial European bank reserves, operational volume caps protecting the euro, and transparent USD1 information to ensure transparency and avoid conflicts of interest.
USD1’s Search for Dollar Dominance
World Liberty Financial (WLF), a decentralized finance (DeFi) project heavily associated with the Trump family, officially launched USD1 a month ago. Through this stablecoin, WLF aims to promote dollar dominance worldwide.
So far, this initiative has been working well for WLF. According to CoinGecko, USD1 has now surpassed a market capitalization of $128 million and reached a 24-hour trading volume of nearly $41.6 million. The project has already released 100% of its total supply of 127,971,165 tokens.
USD1’s market capitalization over the past 24 hours. Source: CoinGecko.
For WLF to seriously establish dollar dominance across the globe, it will have to move fast and efficiently. This urgency stems from the need to surpass its main competitors, USDT and USDC. These rivals currently hold a massive market share advantage.
Additionally, there’s a need to maintain a competitive advantage against established currencies like the euro.
USD1 needs to access foreign markets and stand out from established competitors to achieve this. Should Europe become a primary target, USD1 must prepare to tackle numerous challenges head-on.
The EU’s Stringent Compliance Demands
The European Union (EU) became the first jurisdiction in the world to establish a comprehensive regulatory framework for digital assets across its 27 member states. This regulation, known as Markets in Crypto-Assets (MiCA), has been in effect for nearly four months. Through this legislation, the EU has confirmed how seriously it takes compliance with a defined regulatory regime.
The regulation is detailed and clear, leaving no room for interpretation. If USD1 wants to operate in this crypto market of 31 million users, it must ensure it meets every demand.
US Senators Flag Risks of Presidential Involvement in USD1
In the letter, the group asked both agencies to clarify how they plan to uphold regulatory integrity following the issuance of USD1.
The Senators cautioned that letting a president personally benefit from a digital currency overseen by federal agencies he has sway over is a big risk to the financial system. They argued that an unprecedented situation like this one could hurt people’s trust in how regulations are made.
“The launch of a stablecoin directly tied to a sitting President who stands to benefit financially from the stablecoin’s success presents unprecedented risks to our financial system,” they argued.
The letter further detailed situations where Trump could directly or indirectly affect decisions regarding USD1.
As things stand, USD1 isn’t well-prepared to follow MiCA’s strict reporting and transparency rules.
How Do Concerns Over USD1 Impact MiCA Acquisition?
According to Ianeva-Aubert, if USD1 doesn’t clear up doubts over potential conflicts of interest, this would affect its ability to apply for an operating license in the European Union.
“MiCA requires strong governance, including independent directors and clear separation between owners and managers. Issuers must have clear rules to handle conflicts of interest. If USD1 has any conflicts, this could make it harder to comply,” she said.
Ianeva-Aubert also highlighted that WLF still hasn’t released enough public information on USD1 to assess the degree of its compliance effectively. In particular, the stablecoin issuer has not disclosed the measures it would take to safeguard against market manipulation.
As of now, USD1 would likely fail MiCA’s transparency tests. However, industry experts pointed out other parts of the framework that might be even larger obstacles for USD1 to operate across the European Union.
Impact of the EU’s Reserve Mandate on USD1
When asked about the biggest regulatory hurdles USD1 would face in securing a MiCA license, experts’ responses were unanimous. The stablecoin would need to store a large portion of its reserves in a European bank.
This mandate has proven difficult for established stablecoin issuers seeking operations across the region.
This regulation aims to ensure seamless accessibility for European crypto users and traders. For Forest Bai, Co-founder of Foresight Ventures, USD1 could capitalize on this opportunity during the early stages of its development. By doing so, it could avoid some of the obstacles its competitors had to endure.
Yet, even as USD1 scales and its demand grows, other mandatory requirements could restrict its scope of success.
MiCA’s Transaction Volume Caps to Preserve Euro Dominance
As part of the MiCA regulation, the European Union has taken specific measures to safeguard the euro’s dominance. If a digital currency not denominated in euros were to become extensively adopted for daily payments within Europe, it could present a potential risk to the European Union’s financial sovereignty and the stability of the euro.
To contain this possibility, MiCA places volume caps on transactions used as a means of exchange within the EU.
In other words, MiCA establishes predefined limits on the transactional volume of such currencies. The EU initiates regulatory measures when these limits are exceeded due to widespread payment usage.
Specifically, USD1 issuers must suspend any further digital currency issuance and provide a remediation plan to the relevant regulator, outlining steps to ensure their usage does not negatively impact the euro.
If USD1 wants to work in places where it can experience uninhibited growth, the European market might not be the best fit for this stablecoin. Other parts of MiCA also suggest this could be the case.
MiCA Limitations to Stablecoins as Investment Vehicles
EU regulators have been clear that stablecoins, or e-money tokens (EMTs), as the regulation refers to them, are payment instruments that should not be confused with investment vehicles. The MiCA framework has a few rules in place to prevent this.
Given the circumstances, experts like Bai think WLF might want to focus on countries with better market conditions for stablecoin issuers.
Should WLF Consider the EU Market for USD1 Operations?
While the European Union has an undeniable crypto market presence, other jurisdictions have an even larger footprint.
”The EU’s crypto market remains comparatively small, with just 31 million users versus Asia’s 263 million and North America’s 38 million users, according to a report from Euronews. This limited market size may not justify MiCA compliance costs for projects, like WLFI,” Bai told BeInCrypto, adding that “Projects ultimately determine their own growth strategy. Given that, currently, the EU represents a secondary market for USD1, the project’s strategic priorities may naturally shift toward regions with less stringent stablecoin regulations to drive its adoption.”
These circumstances alone may prompt USD1 to reconsider its options.
In fact, USD1 could start by gaining a competitive edge right at home.
USD1’s Political Backing at Home
With a crypto-friendly president in office –whose very crypto project officially announced the launch of USD1– the stablecoin has sufficient backing to make its mark.
Looking past the immediate future, Bai underlined that if the US doesn’t keep developing supportive crypto regulations, USD1’s growth in the country could be held back following a government shift.
Given this reality, USD1’s failure to comply with the EU’s regulations, should it ever even consider applying for a MiCA license in the first place, could have negative consequences for the project’s long-term viability.
Regardless of the markets WLF evaluates in its efforts to increase the reach of USD1, compliance with general stipulations concerning transparency, legal architecture, and real-time transaction oversight could be conducive to its eventual success.
