The post SOL price forms bearish crossover as stablecoin supply drops appeared on BitcoinEthereumNews.com.

SOL price is showing signs of weakness as the stablecoin supply on the network keeps declining. Summary Solana price is down 21% from its monthly high. Stablecoin supply on the network has dropped over the past 7 days. Technical indicators are largely bearish, and a bearish crossover has formed on the daily chart. According to data from crypto.news, the 6th largest cryptocurrency by market cap has dropped 5% from its weekly and 21% from its highest point this month. Solana (SOL) price drop comes as the total supply of stablecoins on the Solana network continued to shrink, dropping by 5.5% to $15.01 billion in the past 7 days. Since stablecoins often serve as the primary liquidity rail and capital base for on-chain trading, this decline signals waning investor demand and reduced capital inflows, adding to the bearish pressure on SOL. This is happening as markets turned red, weighed down by renewed macro jitters stemming from escalating U.S.–China tariff tensions and the ongoing government shutdown. These developments have pushed investors away from risk assets for now, as many wait for clearer signals before re-entering the markets with conviction. Traders are also in a wait-and-watch mode ahead of the U.S. CPI report due on Oct. 24, a key data point that could shape the Federal Reserve’s next move. Originally delayed due to the government shutdown earlier this month, the report will also determine the 2026 Social Security cost-of-living adjustment and could sway market sentiment in a big way. If inflation comes in hotter than expected, it could put fresh pressure on crypto assets like Solana. On the flip side, a cooler CPI print might spark a broader relief rally across risk-on markets. Amidst the broader market weakness and shrinking stablecoin supply, SOL price action also appears to present a bearish outlook on…

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Filed under: News - @ October 23, 2025 10:28 am