Solana Price Prediction as SOL Drops 5% – Can It Recover From Its Recent Crash?
With the Solana (SOL) price having dropped by around 5% on Monday as macro headwinds come in, traders are questioning whether the token might be able to recover from its recent crash.
The Solana price was last around $144, down sharply from earlier session highs above $156. However, the token is up 17% from its Saturday lows just above $120.
SOL dropped suddenly last week amid a widespread altcoin sell-off on concerns about war between Israel and Iran.
Concerns about a full-blown war breaking out eased on Sunday, facilitating a Solana price recovery.
But a rally in US government bond yields and the USD on Monday is currently weighing on the price.
However, a look at the Solana price chart with 4-hour candle sticks suggests a short-term uptrend may have formed.
Assuming the market’s recovery continues, the next upside target will be resistance in the low $160s.
But it will be very difficult for Solana to break above here, given a multitude of risks.
Geopolitics could continue to weigh on the Solana price, and on the broader market. Israel could yet escalate its conflict with Iran in wake of the latter’s missile and drone attack on Saturday.
Moreover, the macro landscape continues to become more unfavorable for crypto in the short term.
In wake of strong manufacturing, jobs and hotter-than-expected CPI data out of the US this week, markets have been paring back on bets for Fed interest rate cuts in 2024, pushing US government bond yields and the USD aggressively higher in recent sessions.
This trend has accelerated on Monday in wake of more robust US data – this time a stronger-than-expected US retail sales report.
This has weighed heavily on risk assets that tend to perform well in an environment of falling rates/USD, like crypto.
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