Solana Price Forecast – Why SOL Could Dip to $128 Short Term

Highlights:

• Solana is in a selloff driven by Bitcoin’s correction
• Solana has also failed at critical weekly resistance, adding to the selloff
• Solana’s adoption could support the price despite marketwide correction

Solana is in the red today, reflecting the ongoing downturn in the cryptocurrency market. When writing, Solana was trading at $161.24, down by 5.85% in the day. This is mainly linked to the correction in the market after Bitcoin failed at a major resistance level.

Bitcoin Could Rebound and Boost Solana

While Bitcoin’s correction is what is pushing Solana higher, this may only be a short-term thing. Bitcoin has failed at a critical resistance level, but institutional adoption through ETFs is on the rise. It is a signal that the sharp corrections experienced in earlier cycles may now be a thing of the past. For top altcoins like Solana, this means the current price action is a temporary dip before a continuation of the momentum it has built so far. Multiple indicators point to strengthening the Solana ecosystem, which will reflect in its price over time.

🚨Over $670M in liquidations.

After Bitcoin’s failed attempt to break the ATH, price sharply dropped to $102,000.

Market is ruthless. Volatility cuts both ways. Manage risk.

Stay alert. pic.twitter.com/EC4GevHV6O

— Thomas Kralow (@TKralow) May 19, 2025

Startup Launches No-Code Builder for Solana Dapps

One indicator of Solana’s improving fundamentals is the launch of a platform that allows users to create Solana apps without writing code. This tool, launched by a startup called Poof, will take user instructions to automatically create smart contracts. This is a big deal as it could see an influx of non-technical users launching apps on the Solana blockchain. Since Solana Dapps use SOL tokens, the demand could see the price of SOL hit new highs.

Solana's Poof: No-code blockchain dev magic lets you create dApps with simple prompts. Zero coding skills needed. Web3 devs rejoice – your barrier to entry just got nuked.https://t.co/6rY5Zf3iZ5

— SinceImSOL (@SinceImSOL) May 17, 2025

Solana Developer Activity on the Rise

Even before this new platform becomes a reality, developers are strongly adopting Solana. Data from Electric Capital shows that year-to-date, Solana developer numbers have shot up by 39%. This points to rising confidence by developers that Solana is the future of Dapps, thanks to its incredible ability to scale and low costs.

yeah tht's where we're at

electric capital latest stats says 24k active devs and 7.7k full timehttps://t.co/RBY4CoynRc

— KenK (@Kenkdoteth) May 17, 2025

Public Corporations Turning to Solana – A Bullish Signal

Solana’s prospects are also evident in the strong performance of stocks that are pivoting towards it. Recently, DeFi Development Corp announced that it was creating a Solana treasury. Now, the company has taken a step further and announced that it is working with the BONK team, one of the top meme coins in the Solana ecosystem. Through the partnership, they will run a validator node together, helping create institutional collaboration.

📢 Partnership alert: $SOL DeFi Development teams up with $BONK to launch a joint validator!

• Shared validator operations
• Plans to boost SOL purchases
• DeFi Dev token up +30% on the news
• Goal: strengthen BONK’s role in the Solana ecosystem#Solana #BONK #DeFi pic.twitter.com/uT5aWSIrXi

— BUKANOV (@Mikhailo478863) May 17, 2025

The DeFi Development Corp will handle validators, while the BONK team will work on driving community engagement. Since the move was announced, DeFi Development Corp’s stock has shot up. It is an indicator that the market is positive on Solana’s prospects and is willing to bet on any company that is adopting Solana.

Technical Analysis – Solana Bears In Control After Failure at Resistance

Solana is in an accelerated selloff today. This is after it failed at the weekly $184.0 resistance on Sunday. If bears sustain the current momentum, then Solana could drop to $128.34 support in the short term.

On the other hand, if the market rebounds, the key target would be the $184.0 resistance. A rally through it would put the $201.78 resistance in the short term. 

Recap

The price of Solana is currently in a correction, a reflection of the broader market price action. However, this is likely short-term price action, mainly reacting to broader market activity. That said, Solana’s fundamentals are strengthening, which speaks to its potential going into the future. For instance, entrepreneurs are launching a platform that will make it possible to launch Solana Dapps without technical knowledge. The integration of Solana into publicly listed companies is an indicator of what the future holds.