"From network instability to geopolitical bombs"...Can Solana maintain its $80 support level?

▲ Solana (SOL)/AI generated image ©

The backdrop to Solana's short-term sharp decline pressure is analyzed as a simultaneous interplay of market-wide risk aversion sentiment due to Middle East geopolitical risks and structural instability factors.

According to CoinMarketCap, a cryptocurrency market data aggregator, on April 13 (local time), Solana (SOL) fell 3.91% over the past 24 hours, dropping to $81.93. During the same period, Bitcoin fell 3.39% and the total cryptocurrency market capitalization decreased by over 3%, indicating a general bearish trend across the market.

The direct cause of this decline is the risk aversion trend triggered by escalating tensions between the United States and Iran. In particular, as military tensions surrounding the Strait of Hormuz expanded, the market quickly shifted to a risk-off phase, and long position liquidations exceeding $100 million occurred across cryptocurrencies, amplifying the downward pressure.

In addition, Solana's inherent structural concerns have constrained investor sentiment. Since January of this year, a slowdown in network activity has been observed, with the number of validators decreasing by 68% and monthly transaction volume declining, leading to persistent doubts about long-term reliability. This weakening of fundamentals acted as a factor exacerbating the decline during a market downturn.

Technically, the $80 range has emerged as a critical turning point. The current Relative Strength Index (RSI) is at 45.36, which is not an oversold region but leaves room for further decline. If this range is defended, an attempt to rebound to $85 is possible, but if it breaks, downward pressure could extend to the $65-$70 range.

In the short term, the market's direction depends on whether the $80 support holds and on expectations for network improvements. Specifically, the Firedancer upgrade, aimed at performance improvement, could provide a positive narrative and a catalyst for a rebound. However, for now, the market is expected to remain more heavily influenced by macro risks.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*