Solana (SOL) Price Dip: Market Shift & Trump's Crypto Warning
Solana (SOL) Price Forecast: A Week of Shifting Tides
This week saw Solana (SOL) underperform investor expectations as Bitcoin and newer altcoins like SUI attracted significant capital. While the overall crypto market showed a bullish trend on Friday, with Bitcoin rising 0.3% daily and 2.1% weekly, Solana experienced a 1.7% daily and 1.9% weekly decline.
This suggests a shift in short-term trader interest, with funds moving towards assets perceived as having stronger immediate narratives.
Bitcoin's rise is largely attributed to continued institutional accumulation, particularly with Bitcoin ETFs reporting record inflows. The launch of a SUI spot ETF application further boosted SUI's price, reaching $3.71 before settling at $3.40—a nearly 60% increase over two weeks.
Solana Below $150: Short-Term Sentiment
SOL’s price dipped below $150 on Friday, indicating a lack of short-term bullish confidence. This underscores the current market's preference for alternative investments.
Eric Trump's 10-Year Warning to Banks
Adding to the long-term narrative for Solana, prominent investor Eric Trump issued a warning to traditional financial institutions. In a CNBC interview, he predicted that banks risk obsolescence within 10 years if they fail to integrate cryptocurrency infrastructure into their operations.
"Systems like SWIFT are a disaster. The traditional banking system is slow and inefficient. You can open a crypto app and transfer money instantly, without bank fees. If banks don’t realize what’s coming, they will be gone in 10 years." – Eric Trump, May 2025
Trump highlighted the speed, accessibility, and cost-effectiveness of decentralized finance (DeFi) platforms like Ethereum and Solana.
With increasing regulatory clarity (e.g., proposed stablecoin regulations and Arizona's strategic Bitcoin reserve bill) and growing institutional adoption, Solana bulls anticipate a potential price surge towards $750. However, technical analysis reveals immediate resistance around $160.
Solana Price Forecast: Bullish Outlook Above $142
SOL is currently trading at $147.98, showing a modest decline. However, technical indicators remain largely bullish. The price is above the Bollinger Bands midline, and the Parabolic SAR suggests a sustained uptrend.
The Bull Bear Power (BBP) oscillator is positive at 8.13, indicating short-term bullish momentum. Support remains intact above the 20-day moving average ($142) and the lower Bollinger Band ($124.77). Resistance sits around $156. A decisive close above $150 could trigger a move towards $156, while a break below $142 could lead to a drop towards $135.
Frequently Asked Questions (FAQs)
- Why did Solana's price drop? Solana experienced a price drop due to investors shifting capital towards Bitcoin and SUI, which benefited from renewed institutional interest.
- Is Solana's long-term outlook positive? Yes, Solana’s long-term prospects remain strong, supported by its DeFi utility and endorsements from prominent investors.
- What is the next key resistance level for SOL? The next significant resistance level is around $156.
Disclaimer: This analysis reflects the author's opinion and is subject to market conditions. Conduct thorough research before investing in cryptocurrencies. Codeum is not liable for any personal financial losses.