- Solana recovered to $134 after dipping to a two-month low of $126, following a U.S. strike on Iran that triggered broad market risk aversion.
- Technical indicators remain bearish, and further declines toward $118 are possible if the price closes below key support at $130.
Solana (SOL) is navigating rough waters after dropping to a two-month low of $126, triggered by rising geopolitical tensions following a US strike on Iran’s nuclear facilities. Although SOL recovered slightly to trade around $134 on Monday, analysts remain cautious as bearish indicators grow stronger.
Solana Slips Amid Global Risk-Off Sentiment
Last week, Solana declined nearly 14%, marking its steepest weekly drop in months. The price crash was largely attributed to renewed conflict in the Middle East, with the US attack on three Iranian nuclear sites escalating already-tense relations. This incident sparked risk-off behavior across financial markets, including crypto. As a result, Bitcoin slipped below $100,000 while Solana plunged to mid-April levels.
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Market watchers are particularly concerned about a potential retaliatory response from Iran, which could deepen the crisis and push crypto prices further down. With Solana still facing macroeconomic headwinds, investor caution remains high.
Bearish Signals Persist for Solana Price
Technical indicators suggest the downtrend may not be over. Solana recently faced rejection at the $160 level twice, and a close below $130 would confirm a continuation of the downward move toward $118. Notably, this aligns with the 61.8% Fibonacci retracement level, highlighting its importance as a critical support.
The Relative Strength Index (RSI) stands at 35, approaching oversold territory, while the MACD displays a bearish crossover and rising red histogram bars—clear signals of continued downward pressure.
Is a Rebound Possible for Solana?
Despite the bearish outlook, there’s potential for a short-term recovery. If SOL holds above $130 and gains traction, it could test its next resistance level at $141.41. However, this would require stabilization in broader market sentiment and a lack of further geopolitical escalation.
For now, Solana’s outlook remains tied closely to international developments. With traders eyeing Iran’s next move, SOL could either recover slightly or fall further depending on how the situation unfolds.
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