Solana Price Updates: Ready to Climb Again?

There are recent updates regarding Solana’s price trend that suggest a potential upswing. 

However, the analysis must be divided into two phases: the actual price-action that has occurred in recent weeks, and the potential future developments in the medium-short term. 

To all this, it is also worth adding the general updates concerning the Solana project and its ecosystem, beyond the price action of its native cryptocurrency SOL. 

Solana Price Trend

The all-time high was reached in January 2025, just below $300. 

This means that, unlike Bitcoin and Ethereum, it reached its peak in the first half of last year, during the height of the Trump-trade, and not in the second half. 

This means that the price action of SOL is slightly different from that of BTC and ETH, and this is due to the memecoin. 

In fact, the significant surge in SOL’s price, rising from $19 in October 2023 to $294 in January 2025, was primarily driven by the shift of the memecoin market from Ethereum to Solana. 

In particular, the majority of that growth, in percentage terms, occurred precisely between the end of 2023 and the beginning of 2024, when the memecoin market was shifting from the Ethereum blockchain to Solana, thanks especially to platforms like Pump.fun.

Once it surpassed $120 in March 2023, a prolonged period of sideways movement with high volatility began, which only concluded last month. 

The issue is that, after failing to return above $250 in September 2025, the price began a prolonged downward phase that appears to still be ongoing, with the lowest point of this phase reached just a few days ago below $80.

It is noteworthy not only that the current price is lower than that of March 2023, but it is also in line with that of March 2022 before the crash caused by the implosion of the Terra-Luna ecosystem. 

The Potential Short Squeeze

In light of all this, it’s not surprising that there are speculations about a possible imminent short squeeze.

The point is that the average funding rate for leveraged positions on SOL has turned significantly negative, indicating a strong predominance of bear positions over bull positions. 

Moreover, generally when the funding rate remains deeply negative, it means that traders are aggressively betting on further declines. Historically, similar situations have often been followed by short squeezes. 

A short squeeze is a rapid and often “painful” phenomenon (for sellers), which occurs when the price of a stock suddenly rises, forcing traders who had bet against that stock to buy it back to limit their losses.

This implies the forced closure of leveraged short positions, resulting in automatic purchases that can trigger a chain reaction, further driving up the price. 

Now, if the price of SOL were to unexpectedly start rising, the ripple effect could even lead Solana’s price to recover the $100 lost at the beginning of the month. 

In fact, previous funding peaks similar to the current one align with the then-local lows, although to be honest, this metric alone cannot be considered a clear signal of reversal. 

However, should the open interest also increase, and a breakout of the current price resistances occur, a short squeeze would become more likely. 

Retail Investors’ Mistakes

It is worth noting that retail investors often make mistakes. 

In particular, if small retail investors collectively bet on potential declines, it might be relatively easy for whales to move the price in the opposite direction, triggering a short squeeze. 

The reason why in similar situations, with a strong predominance of bear positions over bull ones, price lows followed by rebounds have been reached, is precisely because retail investors often make mistakes, and it is very likely that at this moment on Solana, retail investors are predominantly active. 

Whales, on the other hand, not only make mistakes much less frequently, but they also have the power to manipulate smaller markets if they act in a similar manner among themselves. 

At this moment, for example, on Binance, the open interest on Solana is below 5 billion dollars, which is a figure absolutely within reach for whales, should they decide to move together. 

Updates on Solana

Additionally, it’s worth keeping an eye on the recent updates concerning the Solana ecosystem in general. 

First of all, the TVL of Real World Assets (RWA) on Solana is experiencing significant growth, having surpassed $1.6 billion. These figures are still low, but they are on a clear upward trend. 

Additionally, WisdomTree has expanded its regulated tokenized funds on Solana, including money market, equities, and fixed income, and Ondo Global Markets has brought over 200 tokenized ETFs and stocks to Solana.  

Matrixdock has launched the largest tokenized gold product in Asia on Solana, XAUm, featuring instant settlement and DeFi integration.  

Finally, a partnership has been signed between Solana and Fireblocks for institutional treasury infrastructures with high throughput and extremely low costs.

All of this, combined with on-chain metrics, leads to the assertion that despite the SOL price technically still being in a bear phase, at this moment, the Solana ecosystem instead shows resilience and maturation. 

The conditions for a short or medium-term price increase therefore seem to be in place, even though the crypto market still appears to be in significant distress, which obviously complicates matters considerably.