Solana rallied nearly 5% on Friday, down almost 10% in the past week. The Ethereum competitor will likely rally towards its $165 target, a 13% rally within the next week. While Ethereum draws the interest of institutional investors, Solana is competing through partnerships and decentralized applications on the blockchain.
Solana price forecast
According to technical indicators on the SOL/USDT daily price chart, Solana (SOL) could soon observe a trend reversal. SOL is trading at $149.92, and the Ethereum (ETH) competitor could rally 13% and test resistance at $170, the upper boundary of the FVG on the daily price chart.
Above $170, there are two key resistances: R1, which is the psychologically important price level of $200, and R2, which is the lower boundary of an FVG on the daily price chart, at $218.40.
The RSI on the SOL/USDT price chart reads 39 and slopes upwards. MACD flashes red histogram bars under the neutral line. The OBV indicator shows a bullish divergence, with the price heading downwards while the OBV indicator slopes upward. The divergence is typically a sign of a potential trend reversal.
In this case, the consolidation likely ends and SOL price changes in the coming week.
Conversely, SOL could find support at $143.25, the lower boundary of an FVG on the daily price chart.
SOL could rally for these three reasons
Bybit, one of the key crypto exchanges, has partnered with Circle, Tether, Solana, and Sui to introduce a collaborative blockchain ecosystem. The project, Ecopedia, is set to provide structured and accessible crypto education.
Solana’s meme coin ecosystem tanked in response to the tussle between U.S. President Donald Trump and Tesla Chief Elon Musk. In the past week, the past 24 hours, and on Friday, the sector’s market capitalization has declined.
The market cap of the Solana meme coin ecosystem has fallen 5% in the past 24 hours to nearly $10 billion.
It is likely that once the tussle settles, Solana could resume its uptrend.
According to data from The Block, the seven-day daily average of the number of transactions on the Solana blockchain has been steadily upward.
Solana derivatives analysis
Solana derivatives analysis data from Coinglass shows nearly $40 million in long positions were liquidated in the last 24 hours. Less than $5 million in short positions were liquidated in the past 24 hours.
The options volume has climbed nearly 50% in the same timeframe, while open interest slips nearly 7%. The long/short ratio exceeds one on Binance and OKX meaning traders are taking more bullish bets on Solana, expecting the token’s price to rally.
How Trump-Musk tussle influenced Solana price
The public spat between the U.S. President and Tesla Chief made headlines for its impact on Nasdaq, Tesla stock price, and Bitcoin (BTC), among other things. Solana’s price slipped, alongside other altcoins, as traders turned risk-off. Sentiment shifted from neutral to fear in the past day.
Solana has made strides with gains on Friday, it remains to be seen whether the token can wipeout the losses from the past seven days, in the coming week.
The Trump-Musk tussle’s impact is felt in the Solana meme coin ecosystem, with a steep decline in market capitalization. A 5% drop within a 24-hour timeframe is significant, and a recovery is less likely unless led by a catalyst.
Solana: A one-trick pony or not
Analysts at Standard Chartered, the banking giant, labeled Solana a one-trick pony for the meme coin ecosystem’s role in pushing SOL’s price and value higher in the past year. However, it is likely that there is more to SOL with stablecoins, DeFi protocols and partnership announcements in 2025 alone.
Standard Chartered meme coins have stress-tested the blockchain in the past, proving its scalability and throughput are effective and paving the way for higher adoption and partnerships.
In their report, Standard Chartered suggests Solana expand to other sectors to boost its utility, however SOL generates higher volume and utility from meme coin transactions in the past year. While usage may have declined since the peak of the meme coin rally.
Solana trades at $150 at the time of writing on Friday. Depending on the catalysts, the price could steer upwards or downwards and end the state of consolidation, bordered by resistance at $187 and support at $141.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
