- The Solana price faces intact overhead supply above the $90 mark, pressurizing the asset to continue its ongoing correction.
- A falling channel pattern in daily chart drive the mid-term correction trend in SOL
- The upcoming March 1 deadline in Washington is adding uncertainty to digital asset markets as Clarity Act decisions remain unresolved.
The Solana price experienced a sharp drop of over 5% during Friday’s U.S. market hours to currently trade at $81.5. The pullback aligns with broader market reversal following the release of U.S. PPI data which highlights inflationary pressure and lessens the possibility of Fed rate cut in March. However, the market indicators underscores several other external forces—such as regulatory shifts, macro economic development and crown sentiment —that could influence the behavior of the majority of major cryptocurrencies like SOL in the coming month.
Key Reasons That Could Drive Market Volatility in March
With just a few hours to go before the informal March 1 deadline in the White House, the Digital Asset Market Clarity Act (CLARITY Act) remains stuck on the issue of contention: can the issuers of stablecoins provide yield or reward to their users?
Banking officials have reported that concession language is being circulated but nowhere near agreeable, as people close to the negotiations have said that the two parties are not even in the same ball park and failure to agree on the same may spell doom to the bill in the senate.
The bill, which passed through the House in the middle of 2025, aims to set more distinct boundaries between securities and commodities regulation, simplify exchange registration, and more regulatory certainty in enforcement of digital assets not tied to stablecoins.
The last closed-door meetings with industry participants of companies such as Coinbase and Ripple have closed several divisions, but the problem of stablecoin rewards, which is associated with the understanding of the previous GENIUS Act, still prevents the active development.
The latest lawsuit against Jane Street, a quantitative trading firm has been a focus of parallel market chatter. The motion filed by the Terraform Labs bankruptcy administrator accuses insider trading and front-running of the collapse of Terra/Luna in 2022, leading to viral speculation on social media that the company may have played a role in the pressure on Bitcoin prices due to ETF-related trading as an authorized participant.
Although there are some observers who admit that a recent stop in so-called intraday patterns is attributed to the legal examination, others argue that these statements are exaggerated or unrelated.
Tariff policies, which are in their one-year anniversary of first announcement and implementations, remain in conversation, but received a response of both indifferent and indirect burden on crypto sentiment through higher economic apprehension.
As the weekend is approaching, the focus remains fixed on eventual last-minute cues out of Washington that may alter the path.
This Narrow Range Determine the Next Move in Solana Price
Following a sharp correction in early February, the Solana price has entered a short sideways trend above the $76.7 mark. The price consolidation showed in-between recovery attempts but failed to surpass the $91.4 resistance, resulting in a range formation.
In the last 48-hours, the Solana price dropped from $89.27 to current trading value of $81.6, accounting for 8.5% loss. The pullback signals strong profit-booking above the $90 mark, pressuring the asset to remain in ongoing lateral-trend.
If the selling pressure persists, the Solana price could breach the bottom support of $76.7. The post-breakdown fall could push the Ethereum price to $64.5, followed by $51.5.
On the contrary, the buyers have an opportunity to replenish their control over the asset if they force a breakout above $91.4 and the resistance trendline of falling channel pattern at $97.5.
Also Read: Ethereum Staking Growth Continues at Record Pace; Will Price Follow?
