Solana (CRYPTO: SOL) has been giving up ground over the last day of trading. The cryptocurrency's share price was down 19.4% over the previous 24 hours as of 6:45 p.m. ET Monday.
Solana's big pullback over the stretch is partially a reaction to the explosive gains that the stock posted in Sunday's trading. But the cryptocurrency also saw sell-offs in conjunction with a potential red flag in the artificial intelligence (AI) industry and macroeconomic volatility.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Solana sees sell-offs after asset-reserve rally
On Sunday, President Trump announced that Solana would be one of the cryptocurrencies that is included in the U.S. digital asset reserve program. The project aims to create a gold-like reserve for cryptocurrencies and other digital investment and payment vehicles.
The announcement immediately powered a big valuation pop for the token, but investors moved to take profits following the pricing surge. With today's sell-offs, Solana is now up just 1% over the last week.
Other news items are also weighing on Solana
AI stocks led sell-offs for the broader market this morning as a new round of news reports hit stating that China was managing to circumvent U.S. export restrictions on Nvidia's high-end graphics processing units (GPUs). The reports added to existing concerns about tensions between the two countries and the role that AI is playing in their sometimes hostile dynamic.
Adding another bearish catalyst, President Trump confirmed plans to move ahead with new tariffs on Mexico and Canada tomorrow. Investors are showing concerns that new tariffs will make inflationary pressures worse and potentially create other issues. While the news might not seem like an immediate catalyst for Solana's valuation, investors are hoping that inflation is tamed and that lower interest rates can help pave the way for bullish trading.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $323,920!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $45,851!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $528,808!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of March 3, 2025
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Solana. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
