Crypto Analyst Sounds the Alarm on Solana Price: Could SOL Fall Below $100 Despite Fidelity ETF Filing?
Solana (SOL) has experienced a turbulent week, with its price plummeting by 8% to $115 following former U.S. President Donald Trump’s announcement of new tariffs that sent shockwaves through financial markets.
The broader crypto market suffered significant losses, with Bitcoin and Ethereum also seeing declines exceeding 4%.
A technical analyst on X recently issued a stark warning, noting that if Solana’s price falls below a critical support zone on the weekly chart, they would sell the remaining SOL holdings from their previous all-time high sale.
Solana Approaches Critical Support as Technical Indicators Flash Red
The analyst mentioned that breaking below this level could lead to a much steeper decline, possibly below $100.
This sentiment has heightened bearish concerns among traders already grappling with Solana’s 39.3% year-to-date decline.
At the same time, data from Artemis shows a drop in Solana’s on-chain activity.
Daily active addresses (DAA) have fallen from 7.8 million in December to 4.1 million, while daily transactions (DT) have slipped from a peak of 113 million to 87.5 million.
The meme coin market downturn has contributed to this decline, impacting Solana’s previously surging on-chain activity.
However, not all indicators are negative. Despite these market pressures, Solana’s ecosystem continues to expand.
Stablecoin balances on the network have surged by over 300% in the past year, and decentralized exchange (DEX) volumes remain steady, with platforms like Jupiter, Raydium, and Pump.fun maintaining high usage.
This growth suggests that while short-term price action may be volatile, Solana retains strong fundamentals in the long run.
Notably, Solana is now also testing a key support level between $109 and $111, an area that has historically acted as a strong floor over the past 10 months.
Previous rebounds from this range have led to significant price recoveries, making it a crucial point for traders to watch.
However, technical indicators suggest continued weakness. The Relative Strength Index (RSI) has signaled a sell trend, while the MACD histogram has turned negative for the first time since March 13.
If SOL breaks below this support, it could trigger a sharper decline toward the $100 mark.
Fidelity’s Spot Solana ETF Filing and Growing Ecosystem
Despite Solana’s price struggles, institutional interest in the cryptocurrency remains strong. Fidelity has officially filed for a spot in Solana ETF, which, if approved, could mark a major milestone for SOL’s mainstream adoption.
The ETF, intended for listing on the Cboe BZX Exchange, would hold physical SOL tokens and utilize third-party staking providers for additional returns.
Fidelity argues that Solana’s liquidity and trading volume, averaging $2 billion daily with a fully diluted market cap of $90 billion, make it well-suited for an ETF structure.
The SEC’s acknowledgment of the filing indicates the start of the review process, opening the door for public commentary. Notably, Franklin Templeton has also applied to a spot Solana ETF.
This filing also follows a wave of development for the Solana ecosystem.
For instance, on April 3rd, the USDC Treasury minted 250 million new USDC tokens on the Solana blockchain, injecting approximately $250 million into circulation.
The increase in USDC supply follows Solana’s recent integration with Circle, the stablecoin’s issuer.
Similarly, PayPal has recently expanded its crypto offerings by enabling U.S. users to buy, sell, hold, and transfer Solana (SOL) and Chainlink (LINK) directly on its platform.
Looking forward, while these developments are promising for Solana’s long-term outlook, short-term price action remains heavily influenced by macroeconomic factors, such as Trump’s tariff policies.
With SOL hovering near critical support levels, the coming weeks will determine whether it rebounds or faces another downturn toward sub $100 territory.