Solana, along with Bitcoin and Ethereum, is experiencing losses in the crypto market due to concerns over the ongoing conflict between Israel and Hamas. Solana’s value has dropped by 4.2% to slightly above $21. Meanwhile, Bitcoin is down 1.3% to trade at $26,697, and Ethereum has fallen 1.5% to $1,544. The overall market capitalization, which had surpassed $1.1 trillion last week following the SEC’s approval of Ether futures exchange-traded funds (ETFs), has now decreased to $1.08 trillion.
The price of Solana is currently in a precarious position as it hovers around the 100-day Exponential Moving Average (EMA). After being rejected at resistance level $25 earlier this month, its price has been on a downward trend. To prevent SOL from dropping below $20, the bulls must successfully defend the 100-day EMA support at $21.17. The Moving Average Convergence Divergence (MACD) also supports a bearish outlook, indicating that the path of least resistance is downwards.
If SOL breaks below immediate support, it could trigger a sell-off and potentially lead to a crash similar to what happened during the FTX implosion in November. Other key support levels for Solana include $17.5 and $15.
Despite data showing that inflation is easing in the US, the release of the US Consumer Price Index (CPI) has negatively impacted Solana. The CPI rose by 0.4% in September compared to 0.6% in August, marking the largest increase in 14 months. However, economists predict that the Federal Reserve will keep interest rates unchanged after its next meeting on November 1.
The ongoing conflict between Israel and Hamas may also affect oil prices and subsequently impact core inflation rates. However, macro events and speeches this week are unlikely to have a significant impact on the crypto market, which continues to operate independently.
Traders should closely monitor Solana’s reaction to support at the 100-day EMA. A break below this level could trigger a sell-off, while an immediate rebound could lead to consolidation before a potential move towards $25 and $30.
In conclusion, Solana’s price is currently influenced by concerns over the conflict in the Middle East and the release of US inflation data. Traders should carefully analyze market conditions and conduct thorough research before making any investment decisions in cryptocurrencies.
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