Solana Price Prediction: Weekly Chart Sends Sell Signal – SOL to $100?

Solana (SOL) has gone down by 32% in the past 30 days as market sentiment has soured. The 5th largest altcoin did not take full advantage of a brief altseason, and it seems to be paying the price now.

On the institutional front, Solana has received some strong support from Wall Street lately, as multiple companies have launched big SOL treasuries.

Forward Industries is the largest in the list with an initial investment of $1.6 billion in the token, accounting for 1.2% of its circulating supply. Meanwhile, another 9 companies have also made sizable investments in the token and, combined, they account for nearly 3% of the market cap.

Moreover, two Solana spot exchange-traded funds (ETFs) have been launched this year as the U.S. Securities and Exchange Commission (SEC) has softened its rules to get these vehicles listed.

The latest fund, launched by Bitwise, is the most attractive of the two as it stakes 100% of its assets, yielding around 7.3% per year.

Transaction Volumes Dried Up After TRUMP’s Launch

Despite this growing institutional interest, on-chain data shows that ecosystem growth has stalled for Solana. The reason for this is that meme coins alone no longer manage to keep network activity on an uptrend.

Solana Weekly Transactions – Source: Artemis

Following the launch of Official Trump ($TRUMP) in January, traders have been progressively shunning this blockchain. The launch of new protocols like Pump Swap, LetsBonk.fun, and more managed to propel network activity above its January peak in July, but interest has faded again.

Compared to Ethereum, Solana lacks a thriving DeFi ecosystem. Its suite of dApps in this particular market are not as robust as top contenders on Ethereum like Aave.

For example, Kamino, the top lending app on Solana, has a total value locked (TVL) of $2.75 billion at the time of writing, compared to $25 billion that Aave boasts. Decentralization is perhaps the key issue that prevents developers from further using the network.

Although cheaper and more scalable, Solana is less decentralized than its top competitors, with a fewer number of network validators, and a higher share of related node clusters that increase the risk of network downtimes.

Bearish Breakout Below Key Trend Line Support Favors Move to $100

Looking at the weekly chart, a major trend line break has occurred that could set off a chain of events that push SOL back to $120 first and then $100 if negative momentum accelerates.

SOL/USD Weekly Chart (Coinbase) – Source: TradingView

In this higher time frame, the price broke below a long-dated trend line support. The higher the time frame is, the more probable these breakouts are to produce the expected outcome.

The latest developments concerning President Donald Trump’s trade war with China, the U.S. government shutdown, and the Federal Reserve’s reluctance to lower rates in December, as the market expected, have contributed to this trend reversal.

Although this does not necessarily mark the beginning of a bear market, it could be an early signal that we are about to enter a bearish cycle.

If the price reaches $120 first, it would retest a key horizontal support that is in confluence with the 200-week exponential moving average (EMA) – also a major area of supply.

SOL’s inability to bounce off this level strongly could mean that buying interest has waned. No matter how many ETFs and treasuries are launched, losing that support could catalyze a much steeper drop to $100 or lower.