- Solana (SOL) recovered slightly to $134 after dropping to a two-month low of $126, triggered by heightened geopolitical tensions following a US strike on Iran.
- However, the technical outlook remains bearish, with a potential drop to $118 if SOL closes below key support at $130.
Solana Slides After US Strike on Iran Sparks Crypto Sell-Off
Solana (SOL) is attempting a fragile recovery after plunging to a two-month low of $126 on Sunday. The dip came in response to a wave of risk aversion triggered by a US military strike on Iran’s nuclear facilities, heightening tensions in the already volatile Middle East. As geopolitical jitters gripped global markets, cryptocurrencies saw significant sell-offs — with Solana sliding nearly 14% in a week before rebounding slightly to trade at $134 on Monday.
This steep drop in price saw SOL lose crucial support at $160, a level it had struggled to reclaim following repeated rejections over the past two weeks. The broader war between Iran and Israel, now intensified by US intervention, continues to weigh on investor sentiment and could fuel further downside pressure on risk assets like SOL.
XRP Technical Picture Turns Bearish Amid Risk-Off Sentiment
From a technical standpoint, Solana’s outlook remains bearish. The daily chart reveals that SOL was rejected at the 200-day Exponential Moving Average and is now trading below the key Fibonacci retracement level of $130.58 — the 61.8% level drawn from its April low of $95.26 to the May high of $187.73. A daily close below this threshold could confirm a deeper correction toward the $118 support zone.
The Relative Strength Index (RSI) has dropped to 35, nearing oversold territory, which suggests the bearish momentum could continue — especially as the MACD indicator reflects a bearish crossover and increasing red histogram bars below the neutral line.
Can Solana Reclaim Strength or Is More Downside Ahead?
While short-term recovery is possible — especially if Solana regains ground above $141.41 — the broader market environment remains fragile. Iran’s potential retaliation or broader escalation could deepen risk aversion, dragging crypto prices even lower. Until SOL decisively breaks above key resistance levels, traders should brace for more volatility.
In summary, while Solana’s bounce back to $134 provides some relief, the storm is far from over — and market participants should stay cautious amid rising geopolitical tension.
