Solana token SOL has dropped 8% since October 1, reaching $22.8 in the New York hours of October 4. Technical analysis of the daily and weekly charts, as well as macroeconomic conditions, suggest a bearish continuation for Solana in Q4.The coin has been charting within a technical pattern called the “rising triangle”, with a flat support-turned-resistance since 2021 and a lower trendline preventing sharp drops since late December 2022. If the Solana token breaks below the support, its target price could be practically zero.The weekly chart also confirms the bearish forecast, as the coin recoiled from the 50-week exponential moving average (50-week EMA). Additionally, Solana’s price action is highly dependent on Bitcoin, and the correlation has been rising since mid-September.Macroeconomic conditions, such as the persistently climbing Treasury yields and piling debt, could dampen the crypto market’s chances for a convincing rally in Q4. Bitcoin has exhibited a positive correlation with US Bonds in 2023, but such behavior is not typical for the long haul.Furthermore, Solana and the broader altcoin market could face more selling pressure as FTX got approval to liquidate its assets on September 13. The exchange reportedly had $3.4 billion in various crypto assets, with SOL holdings topping the pile at $1.16 billion. If a Bitcoin crash follows in Q4, Solana is unlikely to pull a solo surge.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | negative |
| Relevance Score | 8 |
| People | None |
| Companies | Solana Network, Arkham Intelligence, US Treasury, Nasdaq-100, FTX |
| Currencies | US Dollar, Solana, FintruX, Ethereum, Bitcoin |
| Securities | None |
