Solana Price Forecast: Market Fully Ignores Fundamentals – Is SOL Heading to $100?

Solana (SOL) has gone down by nearly 3% in the past 24 hours but has recovered from a session low of $118 after hitting a key support.

President Donald Trump’s unexpected tariff announcements once again rattled the markets. This time, the head of state threatened to slap Canada with a 100% tariff if it struck a deal with China.

The market tanked on Sunday right after the Asian session opened, pushing SOL to these lows. Trading volumes spiked by nearly 300% as a result. In total, over $6 billion worth of the token has exchanged hands during this relatively short period, reflecting the market’s strong reaction to the news.

Crypto Fear and Greed Index – Source: CoinMarketCap

The Crypto Fear and Greed Index confirms a marked shift in sentiment, as this gauge fell from a recent high of 54 to 29 at the time of writing. Investors continue to be skeptical about the near-term outlook for cryptos as Trump’s hostilities keep derailing all of the market’s latest attempts to recover.

Network Fundamentals Improved Significantly – Why is SOL Still Dropping?

Despite the bearish news, on-chain data from Artemis shows that usage metrics have spiked lately, as demand from meme coins appears to be rising.

Solana’s On-Chain Metrics – Source: Artemis

Weekly active users (WAUs) have increased for a fourth consecutive week and just hit their highest level since June 2025. Last week, WAUs moved to 5.1 million, up 4% compared to the previous week.

Similarly, weekly transaction volumes have experienced a strong jump from 466 million TXs processed during the last week of December to 764.9 million transactions settled last week. This translates into a remarkable 64% increase in just a month.

Interestingly, the last two times that SOL peaked ($253 on November 2024 and $240 on September 2025), transaction volumes were near these levels.

We are witnessing a strong disconnect between the network’s fundamentals and Solana’s token price, possibly as macroeconomic and geopolitical factors are playing a much stronger role in shaping the valuation.

Hence, we could expect a strong recovery once the dust settles a bit and Trump’s trade rhetoric calms. From a fundamental standpoint, SOL seems to be undervalued based on historical patterns.

Solana Price Forecast: Sell Signal Flashed During the Asian Session

Heading to the 4-hour chart, a sell signal recently flashed on Sunday as the token was dumped during the beginning of the Asian session.

SOL/USD 4H Chart (Kraken) – Source: TradingView

However, buying pressure increased as soon as SOL hit $120, reflecting this level’s technical relevance.

A spike in volumes indicates that this is a highly contested area, and one that is key to determining where SOL may be heading next. If the price manages to climb past $125, this would confirm a trend reversal and could put Solana on track to recover to $130 and then to $145.

However, as market sentiment remains heavily depressed, the odds still favor a break below this mark. In this case, the downside risk would be quite high as SOL could drop to the low 100s for the first time in months.