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The SOL price experienced a steep decline on October 11, falling from $221.95 to $184.15 in just 24 hours as the broader cryptocurrency market plunged. Over $250 billion in value was wiped from global crypto capitalization, which dropped 9% to $3.83 trillion. According to the Solana price chart, the token lost 15% in a single day, extending losses to 20% weekly and 18% over the past month.

This sharp correction broke the lower support of its ascending channel, an alarming technical signal that pushed SOL price today below the critical $200 mark. The drop came unexpectedly following a cascade of liquidations and heightened geopolitical anxiety.

Tariff Shock Triggers Fear and Liquidation

The trigger behind the abrupt decline was political rather than crypto-specific. Late on October 11, President Trump announced plans to impose a 100% tariff on Chinese imports starting November 1. The statement followed China’s decision to limit exports of rare earth elements vital to the semiconductor and tech industries.

This announcement rattled global markets, sparking a wave of risk-off sentiment. Adding to the turbulence, the U.S. administration also revealed forthcoming export restrictions on critical software further amplifying concerns of a trade war escalation. 

In response, traders rushed to de-risk, accelerating sell pressure across major digital assets, including Solana crypto, which suffered one of the heaviest declines among large-cap tokens.

ETF Approval Optimism Could Revive Momentum

Despite the turmoil, optimism still lingers for SOL price forecast as the likelihood of multiple U.S.-approved Solana ETF has strengthened significantly. 

Following recent regulatory reforms that simplified the SEC’s listing standards, the chances for ETF approval have surged to near certainty. Currently, the Block ETF tracker data confirms only 3 products live and many others are still on the waitlist.

These developments could become a turning point for Solana, as institutional exposure through ETFs may attract significant liquidity inflows. 

A U.S.-listed Solana ETF would signal regulatory confidence, potentially reigniting investor demand and supporting SOL price USD recovery in the weeks ahead.

Rate Cuts and Macro Risks Shape Short-Term Outlook

While short-term price action remains uncertain, potential Federal Reserve rate cuts later this month could bolster sentiment. Historically, rate cuts have funneled capital into risk assets, benefiting digital currencies like Solana.

However, if macroeconomic tensions escalate or trade restrictions deepen, the SOL price prediction could turn more bearish, with a possible test of lower support areas near $170. Nonetheless, a stabilization above $185 coupled with ETF momentum may mark the beginning of a rebound phase.

In summary, SOL price stands at a critical juncture squeezed between macroeconomic fear and institutional optimism. A confirmed ETF approval could shift the tide, but global uncertainty remains the dominant factor shaping near-term movements.