As Bitcoin Wavers, Altcoins Take Direct Hit…Solana $80 Warning

▲ Bitcoin, Solana/ChatGPT-generated image ©

Solana is facing increasing short-term downward pressure, caught up in Middle East-driven risk-off sentiment and the shock of leveraged liquidations, rather than individual negative news.

According to CoinMarketCap, a cryptocurrency market data aggregator, on April 20 (local time), Solana (SOL) showed weakness, falling 2.81% over 24 hours to $83.88. During the same period, Bitcoin (BTC) also fell 2.24%, making the defense of the $74,000 mark a key market variable. The market interprets this decline as a broader risk-off trend across cryptocurrencies rather than an issue specific to Solana.

The direct background is the re-escalation of geopolitical risks in the Middle East. As news of the Strait of Hormuz closure spread, investors moved to reduce their exposure to risky assets, and highly volatile altcoins like Solana faced greater pressure, according to analysis. CoinMarketCap pointed out that Solana's decline was a result of its sensitive reaction to external macroeconomic variables rather than individual project news.

Liquidations in the derivatives market also exacerbated the decline. Over the past 24 hours, liquidations exceeding $130 million occurred in Solana-related positions, with $130.13 million of that attributed to short position liquidations. With leverage quickly built up during the recent rebound, the market's shake-up led to increased volatility in a period of thin liquidity.

Short-term price ranges are also clear. $85.73, where the 30-day simple moving average is located, has been presented as the primary resistance level, while $83.50 has been identified as a key support level. If this range is maintained, a sideways trend between $83.50 and $85.70 is possible, but if it falls below $83.50, there is a possibility of retesting $80.

Ultimately, Solana's direction this week is assessed to depend on the flow of news from the Middle East and Bitcoin's stability. If Bitcoin holds above $74,000 and geopolitical tensions ease, Solana could also take a breather, but conversely, if instability prolongs, the bleeding across altcoins could worsen. CoinMarketCap believes that a conservative approach is needed from a short-term perspective until Solana strongly recovers to $86.

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