Solana Price Prediction: SOL Retests $155 and Provides Perfect Entry for Shorts

Trading volumes have nearly doubled during this period and are currently nearing $3 billion as the market awaits the outcome of the tariff negotiations taking place in London between the United States and China.

Meme coins could be partially responsible for this significant uptick in the price of SOL as top Solana-based tokens in this category like Bonk (BONK), Fartcoin (FARTCOIN), and dogwifhat (WIF) have booked 24-hour gains of 5%, 10%, and 7% respectively.

Similarly, the largest decentralized exchange in the Solana ecosystem, Raydium (RAY), has seen the price of its native asset skyrocket by 11.5% in the past 24 hours with trading volumes rising by nearly 300% during this period.

The positive performance of meme coins is a key catalyst for SOL as FOMO tends to get a hold of the market when big single-day price upticks occur. As the network’s utility token, SOL is used to settle transactions made with tokens minted in its network. Hence, higher meme coin prices drive Solana up.

Downside Risk is Huge in This ‘One-Sided’ Market

Looking at SOL’s open interest, we can see that futures trading activity neared its record high of the year in late May back when the token rose to around $260.

However, the price has failed to reach those highs even though traders have moved back to the market en masse.

This may imply significant untapped upside potential for SOL as the market seems to be accumulating with the expectation of a big upward move.

The market has been flushing out excess leverage lately as the long/short ratio of Binance accounts with exposure to SOLUSDT reached a peak of 3.24 at some point in late May as well.

Right now, this indicator stands at 2, which is still quite high and could favor further drops as market makers could keep chasing big loads of stop orders placed below key levels that SOL has not retested yet after the April-May rally.

Nearly $50 million worth of SOL long positions were flushed out after the price reached $144. Hence, the $140 level could be a short-term target for sellers if they go on a stop-hunting spree.

Today’s Retest Could Confirm Bearish Outlook

Looking at the daily chart, Solana broke its uptrend on June 5 when the price dropped to that level. It encountered strong support at that point, possibly as short-sellers covered their positions and took some profits out.

Bulls have now managed to push the price to $155, which is a key resistance as it is a former higher high that the market is now retesting.

If the price rejects a move above this level, it would confirm a change of character (ChOCh) that could result in a big decline to $135.

The chart shows the key levels of support to watch if the price action confirms a bearish outlook.

The 9-day exponential moving average (EMA) has dropped below the 21-day EMA and they have both posted a ‘death cross’ upon dropping below the 200-day EMA as well. This favors a bearish outlook in the near term.

The Relative Strength Index seems to be retesting its 14-day moving average from below as part of a natural pullback. However, as the price structure has shifted, this retest could provide a great entry for short-sellers that would offer the maximum risk-reward ratio.