Solana price has been in the red over the past few weeks, in tandem with the global crypto market amid a buffet of surprise headwinds for the crypto industry. SOL’s price is down by nearly 18% in the month to date and 6% lower for the week. The asset’s total market cap has crashed by more than 5% over the last day to $8 billion, ranking it 9th in the crypto market, while the total volume of SOL traded over the same period jumped by 35%.
Solana price has posted significant losses over the past week as global economic headwinds and a decline in risk appetite continue to weigh on the cryptocurrency market. Crypto bigwigs, including Bitcoin and Ethereum, have each slipped by more than 4% over the last day to trade at $25,980 and $1,643, respectively.
The cryptocurrency market rallied briefly on Tuesday as crypto market participants reacted to Grayscale’s landmark court win against the US Securities and Exchange Commission (SEC). The US Court of Appeals handling the case ruled that the SEC was wrong to deny Grayscale permission to convert its popular Bitcoin trust to EFT. The news lifted the cryptocurrency market broadly as well as crypto equities higher.
Even so, the rally was short-lived, seeing that the court ruling was not enough to sustain the bullish breakout. Investors and crypto market participants remain on the lookout after the SEC filed a secret, sealed motion in its case against Binance, which includes more than 35 exhibits. The Wall Street regulator’s insistent crackdown on the crypto industry remains a major concern for market participants.
Investors will also be closely watching key economic data, including the nonfarm payrolls data due later today, hunting for clues on the economic outlook, as well as the Fed’s monetary policy path. Data published by the Bureau of Economic Analysis on Thursday shows that the Fed’s favorite inflation gauge, the core personal consumption expenditures (PCE) index rose 4.2% in July, in line with market expectations. The increase in consumer spending raises the chances of the Federal Reserve further hiking its interest rates this year.
Solana Price Technical Analysis
Solana price has failed to start a fresh bull run above the important level of $22 over the past few days, pushing its price nearly 18% lower over the past 30 days. Even so, the bulls briefly gained control on Tuesday, adding more than 6% in SOL’s value before backing out. The digital asset has formed a bearish triangle on the daily chart shown in yellow, indicating a continuation of the bearish trajectory.
SOL remains below the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages. Its Relative Strength Index (RSI) remains below the signal line, indicating an increase in selling pressure, with the Moving Average Convergence Divergence (MACD) indicator pointing to a sell signal.
Consequently, the Solana price is likely to continue falling in the ensuing sessions with bears taking full control of the market, thus increasing the selling pressure. If this happens, the next support levels to watch will be $19 and $17.70. However, we cannot rule out a flip above the major hurdle at $22, which will invalidate the bearish thesis.