Solana (SOL) Price Prediction: Is a New Bull Market Starting?

The digital asset market has been rife with volatility over the past few weeks, and Solana (SOL) has not been an exception.

The digital asset market has been subject to significant volatility in recent weeks, and Solana (SOL) has not been an exception. As its price has seen a recent setback, some indicators suggest that SOL might be gearing up for a potential bullish cycle.

Solana’s price rebounded from a session low of $96 to close near $107, showcasing some resilience. This upward movement was further buoyed by global news, particularly the decision to halt the implementation of higher tariffs on several countries, which pushed the price up to $119.

However, despite this positive move, SOL experienced a 4% setback today as the market shifts its attention to the U.S. inflation report for March.

The inflation rate came in at 2.4%, which was 20 basis points lower than the analysts’ consensus estimate. Usually, such an underperformance would likely lead to a crypto market rally. But the looming tariffs are casting a shadow over the market, preventing broader enthusiasm. This uncertainty continues to dampen investor sentiment.

FART Coin Drives DEX Trading Volumes Higher

A major catalyst for the recent increase in Solana’s decentralized finance (DeFi) activity has been the surge in FART, a Solana-based meme coin. FART has taken the market by surprise as its price has nearly doubled in the past week while many other digital assets have faced steep declines.

Trading volumes for FART in the past 24 hours have soared by 56%, reaching nearly $432 million. Among these volumes, a large portion is being driven by the FART/SOL pair on Solana-based DEXs like Orca and Raydium.

The price action in meme coins often triggers a broader speculative frenzy, and this momentum could potentially spill over into other Solana-based assets, including SOL itself.

The increase in trading volumes on Solana DEXs has been substantial, with the first 9 days of the month showing a 23.5% increase over March’s volumes. This uptick suggests that the market could be starting to reverse its downtrend, especially if meme coins like FART continue to rally.

Solana’s Price Action and Technical Indicators

Looking at Solana’s price chart, SOL bounced off a key support level this week, offering some hope for a bullish recovery. Momentum indicators have shown slight improvement, further adding to the optimism.

The Relative Strength Index (RSI) recently crossed above its signal line, sending a buy signal, while the MACD’s histogram shows that negative momentum has decelerated.

Despite these positive signals, SOL is still largely confined to a downtrend until a stronger reversal is confirmed. The chart features a descending triangle, a bearish price pattern that signals selling pressure at any price above the support level. As SOL continues to approach this support, there is a threat of further downward pressure, especially if the broader market remains pessimistic.

If SOL breaks below the $100 support, it could face a 22% decline, targeting the $78 area. If global trade tensions worsen, this could push the price even lower, potentially as low as $70.

Trading volumes around the $100 level have been relatively high, indicating a significant buildup of buy orders at this critical juncture. If sellers manage to break this level again, the market’s buying power could already be exhausted, favoring a bearish breakout.

If buyers can defend the $100 support, it suggests that they are still capable of pushing the price higher. However, if sellers manage to break through the $100 level again, it signals that the market's buying strength might be waning, favoring a continuation of the downtrend.

If sellers break through the $100 support level and close a candle below it, it would be a bearish signal, indicating that sellers have gained control and are likely to continue pushing the price lower.

But if buyers manage to defend the $100 support level and close a candle above it, it would be a bullish signal, indicating that buyers are still in control and might be able to push the price higher.

The technical indicators are also showing mixed signals. The RSI is showing signs of oversold conditions, which could lead to a short-term rebound. However, the MACD is still in negative territory, which indicates that there is more selling pressure than buying pressure.

Overall, the technical indicators are suggesting that the tide might be turning in favor of buyers, but the selling pressure is still strong.

The direction of the global trade talks will also be a key factor to watch. If the talks break down and trade tensions escalate, this could lead to further weakness in the crypto market, which could push SOL lower. However, if the talks proceed smoothly and there are signs of a trade deal being reached, this could lead to a rally in the crypto market, which could push SOL higher.

In the short term, SOL