Solana (SOL) is witnessing a significant decline as cryptocurrency adoption trends continue to be impacted by global economic factors. SOL fell 8% to $128.82, primarily due to rising geopolitical tensions. This decline followed a sharp drop from $140.39 to $127.25, with a notable sell-off at 1:00 p.m. as trading volume surpassed 4 million, according to CoinDesk Research’s technical analysis model.
How Geopolitical Events Affect Cryptocurrency Adoption Trends
The crypto market’s reaction was triggered by U.S. military action against Iranian nuclear facilities, leading to a risk-averse atmosphere. Traders express concerns that a potential halt of operations in the Strait of Hormuz could drive up oil prices significantly. The resulting inflation could decrease the likelihood of imminent rate cuts by the Federal Reserve, maintaining a risk-off sentiment that negatively affects cryptocurrency markets. In times of geopolitical uncertainty, bitcoin’s dominance tends to rise, further pressuring altcoins.
SOL’s recent drop also led to a breach of vital technical thresholds, including falling below the 200-day simple moving average of around $149.54. Throughout the trading session, SOL exhibited a pattern of lower highs, failing to rebound, which signifies a weakening market structure. Increased trading volume during sell-offs and bearish technical indicators point to possible support around the $120–$125 range.
Technical Analysis Signals Support Areas
- SOL fell 8.1% from $140.39 to $129.02 during the review period, reflecting a decrease of $11.37 overall.
- The price swung between $141.14 and $126.85 within the session, marking an intraday change of 10.2%.
- A critical hourly decline was observed at 1:00 p.m., where the price dropped from $133.58 to $128.82 with 4.03M in trading volume.
- Throughout the session, a descending channel shaped up, with persistent lows signaling bearish conditions.
- Resistance was encountered at $133.80, hindering recovery attempts.
- Support was initially found at $127.43, with a new floor set at $128.90.
- Between 3:25 p.m. and 3:27 p.m., a surge in volume led to prices dipping below $129.30 during a sustained sell pressure.
- As the session concluded, SOL hovered between $130.42 and $128.85 under continuous selling pressure.
- Repeated attempts to rise above $130.05 failed, with volume spikes on rejections.
- A notable supply concentration near $130.20 strengthened the bear trend.
Disclaimer: Portions of this article were generated using AI tools and reviewed by our editorial staff for accuracy and adherence to our standards. For further details, refer to CoinDesk’s AI Policy.
At Bakara Invest, our analysis suggests that cryptocurrency adoption trends may experience increased volatility due to geopolitical events and market dynamics influencing investor behavior.
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