Solana hit a 12-day low amidst broader market downturn.
Bitcoin’s decline impacts altcoins, with increased selling pressure observed.
Solana (SOL) has not escaped the broader crypto market’s bearish start to the highly anticipated “Uptober,” hitting a 12-day low of $142 with a 7% decline over the past 24 hours. This sharp drop in price aligns with the wider cryptocurrency market, which saw Bitcoin plunge to a two-week low of $60,164, dragging altcoins down as investors react to escalating geopolitical tensions between Israel and Iran.
Meanwhile, Solana’s trading volume surged by 100%, reflecting a substantial increase in selling pressure as market sentiment turned negative. The total crypto market cap fell by 4.66% to $2.15 trillion, while total market volume jumped by 52.59% to $116.53 billion. In this landscape, Solana navigates significant headwinds as Ethereum (ETH) also plunged 7%, contributing to the overall decline of the overall altcoin.
SOL’s recent performance contrasts sharply with its bullish trend through September, where it saw gains following a series of network upgrades and growing adoption in decentralized finance (DeFi) and non-fungible tokens (NFTs). However, the war between Israel and Iran has caused a risk-off sentiment, with investors shifting towards traditional safe-haven assets like bonds, gold, and the US dollar.
What Is Ahead For SOL?
Despite the downturn, analysts are not discounting Solana’s long-term potential. Historically, October has been a strong month for Bitcoin and altcoins alike, with average gains of 20%. However, the geopolitical situation and market liquidity concerns are influencing short-term market dynamics.
SOL Price Chart, Source: Sanbase
Solana’s next key support level stands around $138, a critical threshold to watch if the selling pressure persists. Should the market rebound later in the month, SOL could regain momentum as positive global liquidity trends continue to support major cryptocurrencies, including Solana.
For now, Solana investors remain cautious, keeping a close eye on global events and broader market sentiment.
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