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Solana saw a nearly 5% price increase on Friday, although it remains down about 10% over the past week. As a strong Ethereum competitor, Solana is positioning itself to rally toward a $165 target, representing a potential 13% increase over the next seven days. While Ethereum continues to capture the attention of institutional investors, Solana is making waves with its partnerships and a growing ecosystem of decentralized applications.

Solana Price Forecast

Based on technical indicators from the SOL/USDT daily price chart, Solana may experience a trend reversal soon. At the time of writing, SOL is trading at $149.92. Analysts predict a potential rally of 13%, with the price testing resistance at $170, which marks the upper boundary of the Fair Value Gap (FVG) on the daily chart.

If Solana surpasses $170, two key resistance levels could come into play:

  • R1: The psychological price level of $200.
  • R2: The lower boundary of an FVG on the daily chart at $218.40.

On the technical side:

  • The Relative Strength Index (RSI) reads 39 and is trending upward.
  • The MACD indicator shows red histogram bars below the neutral line, signaling bearish momentum.
  • The On-Balance Volume (OBV) indicator displays a bullish divergence, with price trending downward while the OBV slopes upward—a common precursor to a trend reversal.

“The combination of these indicators suggests that Solana’s consolidation phase may soon end, leading to a price shift in the coming week.”

On the downside, SOL could find support at $143.25, which aligns with the lower boundary of an FVG on the daily price chart.

Reasons Solana Could Rally

Several factors could contribute to a potential rally in Solana’s price:

1. Strategic Partnerships

Bybit, a leading cryptocurrency exchange, has partnered with Circle, Tether, Solana, and Sui to launch a collaborative blockchain initiative called Ecopedia. This project aims to provide structured and accessible education on cryptocurrency and blockchain technology, boosting Solana’s visibility and adoption.

2. Meme Coin Ecosystem Recovery

Solana’s meme coin ecosystem recently took a hit due to external factors, including a political tussle between U.S. President Donald Trump and Tesla CEO Elon Musk. The market capitalization of Solana’s meme coin ecosystem dropped by 5% within 24 hours to nearly $10 billion. However, a resolution to this dispute could pave the way for Solana’s ecosystem to recover and resume its uptrend.

3. Increasing Network Activity

Recent data reveals that the seven-day daily average of transactions on the Solana blockchain has been steadily rising. This uptick in activity suggests growing adoption and usage, which could positively influence SOL’s price trajectory.

Solana Derivatives Analysis

Analyzing Solana’s derivatives market provides further insights into the token’s price movements. Data shows that approximately $40 million in long positions were liquidated in the past 24 hours, compared to less than $5 million in short positions. This imbalance highlights a shift in market sentiment.

Other key metrics include:

  • Options Volume: Increased by nearly 50% in the past 24 hours.
  • Open Interest: Declined by 7% during the same period.
  • Long/Short Ratio: Exceeds 1 on platforms like Binance and OKX, indicating bullish sentiment among traders.

Impact of Trump-Musk Tussle on Solana

The public dispute between Donald Trump and Elon Musk has had ripple effects across financial markets, including cryptocurrencies. Altcoins like Solana experienced price drops as traders shifted to a risk-off sentiment. In the past day, market sentiment has swung from neutral to fear, further pressuring Solana’s price.

Although Solana posted gains on Friday, its ability to erase losses from the past week remains uncertain. The meme coin ecosystem, which forms a significant part of Solana’s value proposition, saw a 5% drop in market capitalization within 24 hours. A recovery in this sector may require a significant catalyst.

Is Solana a One-Trick Pony?

Some analysts, including those at Standard Chartered, have labeled Solana a “one-trick pony” due to its heavy reliance on the meme coin ecosystem. However, Solana’s blockchain has demonstrated scalability and high throughput, enabling various use cases beyond meme coins, such as stablecoins and DeFi protocols.

In 2025, Solana has the potential to expand its ecosystem further, leveraging partnerships and driving higher adoption. While meme coins have contributed significantly to Solana’s transaction volume, diversification into other sectors could enhance its utility and long-term value.

At the time of writing, Solana is trading at $150. Depending on upcoming market catalysts, the price could break out of its current consolidation phase, with resistance at $187 and support at $141 serving as key levels to watch.

Disclosure: This article is for informational purposes only and does not constitute investment advice. Readers are advised to conduct their own research before making financial decisions.

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