Solana price has been hit hard lately, dropping from the $220 range to around $177 in just days. The sharp selloff has traders whispering about a possible crash to $40—a level that would mean a catastrophic 78% drop from here. But before jumping to that conclusion, let’s look at the bigger picture. The next few days are shaped not just by crypto sentiment but also by the macro backdrop—specifically, U.S. bank earnings season. What banks reveal about the economy will determine how much pain or relief hits the broader market, crypto included.
The shock announcement from President Donald Trump of a 100% tariff on all Chinese imports starting November 1 has thrown global markets into chaos. With $1.6 trillion erased from U.S. equities in just one trading session, fear has surged back into every corner of the financial system.
Investors are scrambling for safety, and that shift could cut both ways for crypto. On one hand, heightened uncertainty and a weakening dollar often push capital toward decentralized assets like Bitcoin and Solana as hedges against geopolitical instability.
On the other, if panic deepens and liquidity tightens, crypto could face collateral damage as traders rush to cover losses elsewhere. For Solana, this geopolitical shock adds a new layer of volatility—turning the question from “Will it crash?” to “How will it behave in a global risk reset?”
Bank earnings are more than corporate updates—they’re a window into the real economy. If banks report healthy lending activity, strong consumer spending, and upbeat guidance, investors will likely keep risk appetite intact. That supports equities and risk‑on assets like Solana.
But if earnings reveal weakness—soft loan growth, rising defaults, or uncertainty due to the ongoing U.S. government shutdown—liquidity could tighten. A risk‑off shift would pressure high‑beta assets, and SOL price could easily see another leg lower. The entire crypto sector has been moving in sync with macro risk trends, and this earnings season could be the catalyst for the next big move.
U.S. bank consolidation is surging — Q3 2025 logged 52 announced deals, marking the busiest quarter since 2021 and a deal value of about $16.63 billion — the largest in years. This flurry of M&A activity isn’t happening in a vacuum. It reflects growing confidence in the banking sector, fueled by easing regulatory headwinds and improved valuations. For crypto markets, this is a subtle but meaningful signal.
If banks are merging to improve scale and stability, the credit risks that often spill into risk assets may be tamped down — at least temporarily. In that sense, strong M&A momentum could act as a cushion for more aggressive downside in crypto, giving SOL price slightly more leash during macro turbulence.
Solana Price Prediction: Solana’s Chart Speaks Volumes
The daily chart (SOL/USD, Heikin Ashi) shows a clear bearish impulse. Solana price recently closed below the lower Bollinger Band, indicating extreme downside pressure. Historically, such moves often precede short‑term relief rallies back toward the middle band—currently near $213.
Right now, SOL price trades around $177 with immediate resistance at $190–195 and heavier resistance at $205–210. If the price fails to reclaim these zones, the bears will stay in control. On the downside, $175–172 remains the critical short‑term floor. Losing that opens the path toward $165, and potentially $150 if panic returns.
The Probability of a $40 Collapse
A plunge to $40 would require more than a weak earnings season. It would take a perfect storm: a macro recession, deep credit stress, and a Solana‑specific crisis like a major DeFi collapse or network failure. While anything is possible, the current data doesn’t support that kind of apocalyptic drop.
Analysts expect banks to show solid performance—loan portfolios are stable, write‑offs remain low, and IPO and M&A activity is picking up. If this optimism holds, liquidity will stay intact, and the worst‑case crypto crash scenarios become less likely. A short‑term drop to $150 or even $130 is plausible under volatility, but $40 looks far‑fetched unless the macro picture truly unravels.
What the Chart Suggests for the Next Two Weeks?
If earnings come in strong, expect Solana price to bounce toward $195–210. That’s the key reversion zone, aligning with the 20‑day moving average. Reclaiming it could spark a slow grind back to $220–230, especially if Bitcoin stabilizes above $60K.
If results disappoint or the government shutdown drags on, expect pressure to resume. A daily close below $172 would confirm bearish continuation, aiming for $165 first and then $150–130 as the next major support zone. Watch for lower Bollinger Band “walks”—a sign sellers remain relentless.
Smart Trading Approach
In this kind of setup, risk management matters more than prediction. Traders can look for:
- •A green Heikin Ashi candle with an upper wick as the first sign of momentum shift.
- •Reclaim of $190–195 as the trigger for short‑term long entries.
- •Stop‑loss just below $182 to avoid getting trapped in false bounces.
- •For shorts, wait for a clean breakdown below $172 with strong volume confirmation.
This disciplined approach filters out noise while capturing directional momentum.
Conclusion
So, will $Solana crash to $40? Unlikely—unless a full‑blown macro crisis hits. The chart shows heavy selling but also early exhaustion signs. With bank earnings likely to show resilience, the base case points to stabilization above $172 and a rebound toward $210–220 in the near term. If macro sentiment turns risk‑off, $SOL may retest $150—but not much lower without a systemic event.
The bottom line: $40 is fear talking, not fundamentals. The next few weeks will test Solana’s resilience, and the first signal will come not from crypto news, but from Wall Street’s bank earnings reports.