Solana Price News: Is SOL On Its Way to $110 as Network Fees Hit 6-Month Low?

Since its January peak, back when Donald Trump’s meme coin was launched, Solana has seen its price drop by 50% as the meme coin winter has hit the network’s transaction volumes and fees.

On-chain data from The Block indicates that network fees in USD have dropped to $948,900 as of yesterday. This is the lowest level in dollar terms that this metric has hit since September 2024.

Although dollar-based fees are dramatically impacted by the price of SOL, they have also hit their lowest point in the past 6 months in SOL terms.

The market cap of meme coins has shrunk by 65.2% since it hit its peak in December last year and most of the assets in this category have now seen their price drop to pre-election levels or lower.

Meme coins are an important piece of the Solana ecosystem as they drive significant transaction volumes to the network. However, most of the assets in this category have experienced significant drops since the year started.

For example, dogwifhat (WIF) has lost three-quarters of its value in 2025 while Pudgy Penguins (PENGU) has gone down by 84.5%. Meanwhile, newcomers like Official Melania Meme (MELANIA) have experienced even worse drops, with the latter exhibiting a 90.7% year-to-date loss.

SOL Bounces Off $110 as Sellers Take Breather

Trading volumes for SOL have dropped by 30% in the past 24 hours and currently sit at $3.3 billion. This indicates that market volatility may be subsiding, primarily as sentiment has depressed to record-low levels.

The daily chart shows that Solana has bounced off the $110 support level temporarily after Monday’s selling spree managed to cut through the $125 level like butter.

Bulls are trying to recapture this level during today’s Asian session but the hourly price action shows that this is a heavily contended area.

Momentum indicators sent a sell signal recently as the Relative Strength Index (RSI) dropped below the signal line. So, the upticks that we have seen in the past couple of days could be interpreted more as a retest of the signal rather than an early indication of a trend reversal.

Moment of Truth for SOL as it Nears Critical Support

Heading to the hourly chart, we can see that Solana’s Monday uptrend is already showing signs of weakness as the price action just made its first lower high. The key support area at this point is the $123 level.

A break below this threshold could fully reverse the latest uptrend and push the price to $120 first and then to rest the token’s Monday lows of around $112 per coin.

Traders have two ways to play this, either they take a long position if the price bounces off the $123 level and set their stop price slightly below this marker or take a short position if the price action breaks below it during the American session.

In both cases, the risk-reward ratio will be quite attractive. The only missing piece for a long position would be a bullish crossover in the Relative Strength Index (RSI) that has not yet occurred.

For the time being, this lower high is a warning signal that favors a bearish outlook, especially as the RSI has moved below the signal line again. If the $123 level does not hold, the odds favor a decline during the American session.