Solana extended the selloff as Trump’s remarks
on Iran triggered another wave of risk-off flows across crypto markets. The US
dollar and Treasury yields jumped after Trump stated that the US doesn’t need a
deal with Iran, fuelling inflation concerns and expectations of additional rate
hikes.
This continues to create a challenging
environment for Solana amid tightening financial conditions and growth
concerns.
For now, the macro backdrop remains negative for
Solana, so there’s limited room for any rally to be sustained. We will likely
need a concrete breakthrough in US-Iran negotiations or a more dovish Fed to
trigger a relief rally.
SOLANA TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can see that Solana extended
the selloff this week amid the hawkish repricing and the increased US-Iran
tensions. The sellers will likely continue to target the 74.00 handle. If the
price get there, we can expect the buyers to step in, with a defined risk below
the level, to position for a rally into the 148.00 level next, with the
downward trendline as the first target. The sellers, on the other hand, will
want to see the price breaking lower to increase bearish bets into the 60.00
handle next.
SOLANA TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we have a minor downward
trendline defining the bearish momentum. The sellers will likely lean on the
trendline, with a defined risk above it, to keep pushing into new lows. The
buyers, on the other hand, will look for a break higher to pile in for a rally
into new highs, with the major downward trendline as the first target.
SOLANA TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart,
there’s not much we can add here as the sellers will have a better risk to
reward setup around the trendline, while the buyers will need a break to open
the door for new highs. The red lines define the average daily range for today.
UPCOMING CATALYSTS
Today we conclude the week with the US PPI data.
This article was written by Giuseppe Dellamotta at investinglive.com.