Solana Price Drops Below $130 After Chart Rejection
On Thursday, Solana (SOL) price fell below $130. It failed to break above the upper boundary of its falling wedge pattern. Market weakness after the Federal Reserve’s rate cut added pressure. On-chain data also points to more selling, with growing sell-side activity.
Federal Reserve’s Rate Cut Affects Risk Assets
- The US Federal Reserve cut interest rates by 25 basis points to 3.50%-3.75% after its two-day meeting.
- The Fed signaled a likely pause in rate cuts until January.
- Policymakers forecast only a 0.25% cut in 2026, matching September’s outlook.
- This cautious stance lowered market expectations and pressured risk assets like cryptocurrencies.
- Following the Fed’s move, major tokens including Bitcoin, Ethereum, Ripple, and Solana traded lower on Thursday.
On-Chain Data Shows Bearish Signs for Solana
- CryptoQuant’s Taker CVD (Cumulative Volume Delta) for SOL turned negative on Wednesday.
- This means more sellers than buyers for Solana over the last 90 days.
- The Futures Average Order Size indicator shows more small trades, indicating rising retail selling.
- Both signs suggest increased selling pressure and a weak outlook for SOL price.
Solana Technical Outlook: Bears in Control
- SOL price was rejected at the falling wedge’s upper trendline on Wednesday.
- As of Thursday, SOL dropped 3.87% to about $130.99.
- A further decline could test the November 21 low near $121.66.
- The daily Relative Strength Index (RSI) stands at 40, below neutral 50, signaling bearish momentum.
- If SOL recovers, it may try to reach the 50-day EMA near $151.60.
