Solana Price Fluctuates Amid Geopolitical Tensions
Solana (SOL) is showing signs of recovery, trading around $134 on Monday after hitting a two-month low of $126 the previous day. This price correction was triggered by heightened geopolitical concerns following reported US actions in Iran, sparking risk aversion in the cryptocurrency markets.
Geopolitical Uncertainty Weighs on Solana
Last week saw Solana’s price plummet nearly 14%, reaching levels unseen since mid-April. The escalating tensions in the Middle East are a significant factor in this downturn. The conflict between Iran and Israel has been ongoing, and recent reports of US activity targeting Iranian nuclear sites have further fueled investor caution.
The reported US actions in Iran have created a fragile global risk sentiment. Bitcoin also experienced a dip, reaching a low of $98,200 on Sunday, with Solana following suit, touching $126.
Iran’s response to these actions remains a key concern this week. This raises the risk of further escalation and a broader conflict in the Middle East, potentially leading to deeper losses in risk assets like Solana.
Technical Analysis Points to Potential Further Decline
Solana’s price faced resistance around the 200-day Exponential Moving Average (EMA) and closed below its daily support at $160 on June 12th, declining 5.20% in the following two days. SOL rebounded slightly but was again rejected by the $160 level at the start of last week, falling 14% to $126 by Sunday. As of Monday, it’s showing a slight recovery, trading around $134.
A daily close below the 61.80% Fibonacci retracement level (drawn from the April 7th low of $95.26 to the May 23rd high of $187.73) at $130.58 could extend the decline, potentially retesting the next daily support level at $118.10.
The Relative Strength Index (RSI) on the daily chart is at 35, approaching oversold conditions and indicating strong bearish momentum. Additionally, the Moving Average Convergence Divergence (MACD) showed a bearish crossover last week. Increasing red histogram bars below the neutral level further suggest bearish strength and a continuation of the downtrend.
However, if Solana rebounds, it could extend the recovery towards its next resistance level at $141.41.
Key Takeaways:
- Solana’s price is currently around $134 after a recent dip.
- Geopolitical tensions in the Middle East are contributing to market uncertainty.
- Technical indicators suggest potential for further downside if key support levels are breached.
- A rebound could see Solana testing resistance around $141.41.
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