Solana came under renewed pressure as escalating
Middle East tensions weighed on risk sentiment, with reports of US military
preparations for potential strikes on Iran adding to concerns about another
direct confrontation.
The combination of rising oil prices, growing
economic concerns and a hawkish Federal Reserve creates a very challenging
backdrop for the crypto market. If the conflict escalates further, SOL could
remain vulnerable to a broader risk-off move.
Solana has also completed the Alpenglow upgrade
which went live on mainnet on October 21, replacing TowerBFT and targeting
transaction finality of around 150 milliseconds, down from approximately 12.8
seconds.
Looking ahead, tomorrow’s US Flash PMIs could
trigger further volatility given the lingering growth concerns. Weaker than expected
data could intensify growth fears, weigh further on risk sentiment and trigger
another selloff in SOL. Stronger data, on the other hand, might ease the
concerns and lead to a short-term relief rally, although it wouldn’t change the
bigger picture as it would just reinforce the need for further Fed tightening,
thus limiting the recovery.
SOLANA TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can see that Solanais back under pressure as renewed Middle East tensions weighed on
risk sentiment. We have a key support zone around the 97.00 level. If the price
gets there, we can expect the buyers to step in, with a defined risk below the
support, to position for a rally into the 148.00 level. The sellers, on the
other hand, will want to see the price breaking lower to increase the bearish
bets into the major upward trendline next.
SOLANA TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we have a minor support
zone around the 103.50 level. We can expect the dip-buyers to step in here,
with a defined risk below the support, to keep targeting the resistance zone
around the 113.00 level. The sellers, on the other hand, will want to see the
price breaking lower to extend the drop into the 97.00 support.
SOLANA TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, we
have a minor downward trendline defining the current bearish momentum. The
sellers will likely continue to lean on the trendline, with a defined risk
above it, to keep pushing into the 97.00 support. The buyers, on the other
hand, will look for a break higher to pile in for a rally into the 113.00 level
next. The red lines define the average daily range for today.
UPCOMING CATALYSTS
Today we get the latest US Jobless Claims figures, while tomorrow we conclude
the week with the US Flash PMIs.
This article was written by Giuseppe Dellamotta at investinglive.com.