Solana Price Forecast – SOL Could Drop to $100 as China Hits US with Retaliatory Tariffs

Highlights:

• Solana is trending toward the $112.53 support as the selloff intensifies
• A breach of the $112.53 support could see Solana drop to $100
• News of China’s retaliatory tariffs could trigger a drop to $100 or lower 

Solana (SOL) reflects negative intraday sentiment with a slip of almost 1% to $115.8. This decline mirrors the broader decline in the crypto market due to the increased correlation of the cryptocurrency market with the stock markets.

Today, the NASDAQ and other US stock indices are in an accelerated selloff after China announced retaliatory tariffs. This has weighed down on the price of SOL, which is increasingly sending bearish signals ahead of the US market opening. Despite the ongoing selloff triggered by macro factors, Solana’s core fundamentals could trigger a rebound once markets stabilize. 

Retaliation is On . Good Luck To us all 💥

China announces extra 34% tariffs on us goods, imposed from April 10th. adds 11 us companies to the unreliable list
China announces restrictions on some rare earths related items – commerce ministry $fxi $spy pic.twitter.com/mLZAMXKfks

— Tamir T. 🇮🇱 (@TamirTiko2110) April 4, 2025

Fundamentals Support SOL Rebound in the Future

One of them is that Solana ETFs are slowly becoming a reality as the regulatory environment becomes clearer. An important step in the regulatory process was reached last Thursday when the U.S. Security and Exchange Commission accepted Fidelity’s application for a Spot SOL ETF.

#SEC announced that it accepted Fidelity's application for the spot #Solana #SOL ETF. If we can stay over $110, we'll go. pic.twitter.com/mbbeluNgaJ

— Ekokripto Official (@Erkan12107997) April 3, 2025

Asset manager Franklin Templeton has also filed a similar application, making Solana the lead contender among altcoins for ETF sponsorship, which will enhance legitimacy and blockchain investment trust. Fidelity is not alone in the race, as Franklin Templeton has also joined the team, reflecting growing institutional faith in Solana’s long-term potential.

Solana PayPal Integration: A Growth Driver

PayPal’s recent expansion of services to include Solana directly and other crypto assets marks a leap in user access. This adds to Solana’s favorable outlook because it is now integrated into mainstream payment platforms. Users can now sell, buy, hold, and transfer Solana assets directly within the Paypal ecosystem.

💥 PayPal adds Solana and Chainlink for U.S. users pic.twitter.com/yH1NZPAQET

— Oyeee Rahul (@oyeee_rahul) April 2, 2025

 This is a significant advancement from prior restrictions, where users were limited in accessing Solana via services like MoonPay. PayPal listing Solana directly offers users instant access and confirms expansion alongside other key crypto assets, signaling stability. This adds value to SOL and further cements its reputation in terms of utility as a cryptocurrency. 

Regulatory Environment for Solana Now Clearer

The regulatory environment is also softening, as the SEC removed some portions of its complaint against Coinbase and ceased litigation on the Binance case. More recently, the agency stopped pursuing a judicial decision on Solana’s classification, which indicates an interest, at least for now, in taking a different approach or reevaluating internal policy on digital assets. 

Shifting politics and regulatory factors contribute positively to Solana’s future. The new ruling government in the U.S. seems to have a changed view toward digital assets, especially after the SEC staff publicly supported several ETF proposals for Solana. All this could help draw more capital into Solana in the future.

Technical Analysis – SOL Trending Towards Support

Solana bears are firmly in control after bulls failed at the $119.58 resistance. If bears sustain momentum, the key level to watch would be the $112.52 support. A correction through this support could see Solana drop as low as $100 in the short term. 

Conversely, if bulls regain control and push SOL through the $119.58 resistance, then a rally to $126.63. However, with the Chinese retaliatory tariffs weighing down on the market, bears will likely remain in control in the short term. 

Recap

Regardless of the short-term market volatility, Solana is a frontrunner in the future of emerging digital assets. The combination of new funding from institutions, clearer regulations, and wider public use equips SOL with the tools needed for a price rebound once macroeconomic challenges subside.