Solana Price Analysis – Can $97 Support Hold or Is $71 Next?

Highlights:

• Solana is showing weakness intraday as rising volumes point to holders selling.
• Solana’s bearish price action is driven by negative macro factors, including the Iran war.
• A push through the $97.90 support could see SOL drop to $71.70 short term.

Solana is in the red today, reflecting the sell-off across the market. At press time, Solana was trading at $97.91, down 4.26% in the day. While the price is dropping, Solana trading volumes are rising, up 14% as of writing to $97.85. Rising volume when the price is going down indicates that the average holder is selling. This price action is primarily driven by developments in the geopolitical environment.

Escalating Iran War Puts Downside Pressure on Solana Price

One of the big headlines today is the escalation of the war in Iran, with the two sides attacking each other. Some reports indicate that Iran may have hit a supertanker, a move that heightened market tensions, as the oil supply chain could be disrupted further. The immediate impact is that oil prices have begun to rise.

Any time oil prices rise, inflation fears rise as well, which makes the case stronger for a rate hike in the US. This is hurting Solana and other cryptocurrencies because they thrive best in low-interest-rate environments. If the war escalates further and oil starts approaching $100, Solana could erase most of the gains it made towards the end of August.

🚨 BREAKING OVERNIGHT: President Trump has stunned Iran, he went through with his "TANKER FOR TANKER" policy — Axios

Two Iranian tankers were straight-up bombed by US forces, because Iran attacked TWO tankers in Hormuz.

CENTCOM dropped the footage: Iran FAFO'd.

Trump is the… pic.twitter.com/AEEOs8AaVM

— Eric Daugherty (@EricLDaugh) September 2, 2026

Rising US 10-Year Treasury Yields Adding to Solana Selloff

Solana is also being pushed lower by events in the US bond markets. Towards the end of August, the US treasury a doubling of its normal bond buybacks. The move was aimed at stabilizing long-term bond yields, which were spiraling out of control. However, this appears not to have worked, and bond yields continue to rise.

Presently, 10-year US bond yields stand at 4.8%, the highest levels they have hit in years. This is bad for cryptocurrencies because investors tend to avoid high-risk assets in times of high interest rates. With the measures the treasury has put in place seemingly not working, Solana and other cryptocurrencies could see an even steeper short-term correction. 

Rising Expectations for a Rate Hike Add to Solana’s Weakness

Solana is also taking a hit from rising market expectations that the Federal Reserve could hike interest rates this month. For most of August, there was an expectation that the Fed could cut rates. This has changed sharply, and in the prediction markets, roughly 66% of participants expect a rate hike. With rate hike expectations rising and the geopolitical environment volatile, investors are starting to pivot away from cryptocurrencies and other risk-on assets. This makes the case for a sharp drop in SOL’s price as the FOMC date approaches. 

Short-term Traders Booking Profits Pushing SOL Lower

All these negative price indicators are happening after Solana has enjoyed more than a week of stellar gains. As such, short-term holders who are already in profit are comfortable with selling their SOL to protect their profits. At the same time, the elevated price makes a strong case for short sellers now that the macro environment is turning bearish. A combination of profit-taking and leveraged selling could push SOL much lower in the short term.

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Technical Analysis – Solana Price Retests Previous Resistance, Now Support

Solana’s recent breakout through the $97.30 resistance quickly lost momentum, and the price has been in a downtrend for 6 days straight. Solana is now trading at this previous resistance, which is now support. If bears are strong enough to push Solana through the $97.30 support, a correction to $71.70 could follow.

However, if bulls hold the $97.30 support, two scenarios could play out. The first is a consolidation above it until the FOMC. The second scenario is one in which bulls regain control and push SOL higher. In such a case, a rally to $146 could follow. Of these scenarios, a correction to $71.70 is more likely. This is due to an increasingly bearish macro environment, especially the renewed conflict in Iran.