Solana Price Tanks After Lawsuit Fears and Macro Jitters Hit

Ben Graham · 6 horas atrás

The Solana price suffered a sharp sell-off over this past weekend as investors reacted to a class-action lawsuit tied to Pump.fun, the prominent Solana-based memecoin launchpad, and to renewed global market stress.

SOL USD is down roughly 8% over the past seven days, trading around $122, leaving investors worried that a break of the $120 level could send it to $100.

The move fits a broader pattern where altcoins drop fast when fear hits stocks, bonds, and crypto at the same time, and with macroeconomic issues seemingly heating up, the bottom is likely not in for the volatile crypto space.

This kind of drop can be scary for everyday traders, as price crashes often mix real risks with panic-driven selling, which, if it lines up properly, can cause huge sell-offs fuelled by mass liquidations of leveraged positions. These risks are leading to heightened fear and uncertainty across the crypto market right now.

Crypto Fear and Greed Chart

All time 1y 1m 1w 24h

Pump.fun and Political Tension Causing Solana to Drop Like a Rock

The immediate trigger was legal risk. A recent class action lawsuit, Pump.fun, the leading Solana memecoin launchpad, reportedly brought other Solana-linked entities into the spotlight, including the Solana Foundation.

Allegations claim that token launches were manipulated, giving insiders priority access via Solana’s validator and tx infrastructure. This allegedly allowed insiders to buy tokens at the lowest prices before public buyers could join.

Solana-PumpFun RICO Litigation Update

Plaintiffs filed a new amended complaint today in federal court alleging Racketeer Influenced and Corrupt Organizations Act claims against Baton Corp d/b/a PumpFun, Solana Foundation, Solana Labs, and certain officers. Complaint below. pic.twitter.com/9Eko0gPgqQ

— Burwick Law (@BurwickLaw) January 7, 2026

“What appeared to be a fair, automated marketplace was, Plaintiffs say, structurally tilted to extract value from ordinary users while rewarding those with privileged access to Solana’s infrastructure and Jito Lab’s transaction ordering tools.”

At the same time, global markets have turned risk-off amid growing political tension over US trade policy, and Europe pushed stocks lower, with crypto following suit. SOL USD, as with other digital assets, tends to fall hard whenever Wall Street gets spooked.

If you want the wider backdrop, this move lines up with the broader crypto market downturn that hit Ethereum and XRP, too.

Why PUMP and Solana USD React Harder Than Many Other Coins

Because Solana is known for hosting an entire ecosystem of DeFi apps, memecoins, and trading platforms, it attracts fast money. When fear spikes, leveraged and spot traders alike quickly unwind their positions, and when liquidity dries up, prices drop hard.

That doesn’t mean the network stopped working. In fact, Solana’s recent price drop came even as on-chain activity remained relatively strong, showing how disconnected price and usage can become in panic moments.

However, SOL USD is down by more than -8% over the past week and continues to slip toward $100. If the $100 level is lost, it is lights out for the Solana price, as multiple long-term support levels will be lost.

The other major project associated with this lawsuit is Pump.fun’s native token. PUMP began 2026 strongly, surging from $0.0019 to $0.003 by January 17. However, over the last 9 days, that price action has begun to reverse, and PUMP is now trading back at $0.0025, with no bounce in sight.

Therefore, this lawsuit, coupled with growing macroeconomic uncertainty, is leading the Solana price, along with PUMP, to experience bearish price action as both tokens continue to fall.

Positive News Got Ignored, and That’s a Clue to Where Solana Price is Going

$SOL Make or Break time pic.twitter.com/aSKb5gKdRI

— Crypto Mechanic (@CryptomechanicX) January 26, 2026

Here’s the strange part. This same week, traditional finance players announced plans to trade tokenized stocks such as Nvidia and Microsoft on Solana via Ondo Finance.

Tokenization is the process of turning real-world assets into blockchain tokens, and in simpler times, announcements such as this have led to explosive price reactions for any token associated with the news.

According to a recent piece by 99Bitcoins writer and analyst Fatima, this is a long-term growth signal for the Solana network. But in fear-driven markets, good news gets ignored, and that is exactly what has happened with SOL USD.

Should Investors Stay Away From Solana While the Lawsuit Unfolds?

Legal uncertainty doesn’t resolve overnight. Lawsuits can drag on and create headline risk even if nothing breaks on-chain. Solana price also moves more violently than Bitcoin. If Bitcoin drops 3%, SOL USD often drops more.

While that can cut both ways in that Solana price pumps can sometimes outshine Bitcoin, with this lawsuit hanging over the entire network, there is a good reason to remain cautious regarding any SOL or PUMP trades and investments right now.

Volatility remains the price of admission. If you already hold SOL, this type of drop is part of the deal. Panic-selling after an -8% weekly slide locks in losses and can’t be undone.

Patience often beats bravado. Analysts often advise letting volatility cool and wait for a bottom to form on the charts. Watching whether legal news escalates or fades is the play here, and if you buy, size responsibly.

Solana’s long-term future likely won’t be killed by a single lawsuit, but the market just reminded everyone that fast networks still come with fast risk.

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