Solana (SOL) prices fell about 5 percent on Monday amid macroeconomic factors, and traders are wondering if the token can recover from its recent plunge.
Solana's final price was around US$144, a sharp decline from the previous session's high of over US$156. However, the token has risen 17% since Saturday's low of US$BTC #SOL unexpectedly fell last week amid a widespread sell-off in altcoins due to concerns over the war between Israel and Iran.
On Sunday, fears of a full-scale war eased and Solana's price recovered.
However, rising U. S. Treasury bond yields and the U. S. dollar on Monday are now putting pressure on the #Solana price.
Nevertheless, the four-hour candlestick chart of the Solana price shows that a short-term uptrend is forming.
If the market recovery continues, the next upside target will be resistance near the low $BTC However, given the various risks, it will be very difficult for Solana to break above this level.
Solana price outlook - where to go from here?
Geopolitics may continue to put pressure on the Solana price and the market as a whole. Israel may escalate the conflict with Iran following Saturday's missile and drone strikes.
In addition, the macroeconomic environment is becoming increasingly unfavorable for #cryptocurrencies in the short term.
More favorable than expected data on industrial production, employment and consumer price index (CPI) published this week in the United States made the market give up the prospect of a Fed rate cut in 2024.
This trend was reinforced by stronger-than-expected retail sales data released in the US on Monday.
This has put significant pressure on risk assets such as cryptocurrencies, which tend to perform well in a lower interest rate and dollar environment.
The lull in the #bitcoin market after halving could further discourage Sorun bulls from chasing price gains.
Therefore, bears may view the $160 resistance level as an excellent area to open short positions.
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