FUNDAMENTAL OVERVIEW
Solana’s
selloff this week was primarily driven by broader crypto market weakness amid
escalating geopolitical tensions, rising oil prices and deteriorating risk
sentiment. There were no clear signs of a major negative network-specific
development driving the decline.
Looking
ahead, key Solana-specific catalysts include the Alpenglow consensus upgrade,
which aims to reduce transaction finality to around 150 milliseconds. The
upcoming Solana Breakpoint conference on the 15th of November could also bring new
announcements on partnerships and ecosystem development.
Yesterday,
Solana rebounded alongside other cryptocurrencies after Trump said the US would
not attack Iran before the midterm elections, easing geopolitical tensions and
improving risk sentiment. The resulting pullback in oil prices, Treasury yields
and the US dollar helped alleviate macroeconomic headwinds.
Looking ahead,
markets will focus on Iran’s response to Washington’s proposal, which Foreign
Minister Araghchi said could come within the next few days, and next week’s US
CPI report.
For the
recovery to extend, markets will likely need to see a sustained geopolitical
de-escalation or a soft US CPI report. If the CPI comes in hotter than expected
and we don’t get any improvement on the Middle East side, we could see further
selling pressure weighing on Solana, taking it to new lows.
SOLANA TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the
daily chart, we can see that Solanabroke below the major upward trendline, opening the door for new
lows. If the price drops to the 97.00 support, we can expect the buyers to step
in there, with a defined risk below the support, to position for a rally into
the 149.00 level. The sellers, on the other hand, will want to see the price
breaking lower to increase the bearish bets into the next major trendline.
SOLANA TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4
hour chart, we have a minor resistance zone around the broken trendline where
we can also find the 38.2% Fibonacci retracement level for confluence. If the
price pulls back into the resistance, we can expect the sellers to step in,
with a defined risk above the resistance, to position for a drop into the 97.00
support. The buyers, on the other hand, will want to see the price breaking
higher to pile in for a rally into the 149.00 level next.
SOLANA TECHNICAL
ANALYSIS – 1 HOUR TIMEFRAME
On the 1
hour chart, we have a minor downward trendline defining the recent bearish momentum.
The sellers will likely continue to lean on the trendline, with a defined risk
above the resistance, to keep pushing into new lows. The buyers, on the other
hand, will look for a break above the trendline and the resistance to pile in
for a rally into new highs.
UPCOMING CATALYSTS
Todaywe conclude the week with the University of Michigan
Consumer Sentiment survey, although it’s not expected to be a market-moving
release.
This article was written by Giuseppe Dellamotta at investinglive.com.