Developments in financial markets put pressure on cryptocurrency prices, notably affecting Solana. Internal network issues and economic instability are significant factors in this situation.
Solana Reaches New Three-Year Low
Solana's average purchase price fell from $134 to $114, marking the lowest level since May 2022. This indicates average investors are at a loss, increasing the likelihood of selling pressure from asset holders.
Expectations for SOL Price
SOL aims to stabilize around the $127 mark, but technical indicators signal weakness. With prices below EMA trend lines and an RSI of 44, there is a risk of further decline. Analysts identify $110 as a crucial support level, indicating a potential test of $100 if a breach occurs.
Factors Affecting Solana's Recovery
Solana's recovery is hindered by overall negative market sentiment and macroeconomic uncertainties. Investors are monitoring Fed interest rate policies and global trade war developments. Breaching the $139 resistance level could provide bullish signals, but the situation remains challenging.
The SOL market faces significant challenges due to internal and external factors. Investors should closely watch macroeconomic changes and central bank policies to make informed decisions.
