Solana Price Drops Below $200 Amid Market Pressure
Solana (SOL) is trading below $200 after failing to break a key resistance level. The wider crypto market is under pressure due to rising US-China trade tensions. These tensions have caused investors to avoid risks. Technical signs suggest Solana may face a short-term price correction. The recent price rise could be a dead-cat bounce.
US-China Trade Disputes Increase Market Uncertainty
- On Tuesday, the US and China began charging new port fees on each other’s ships.
- China says these fees protect its shipping industry from unfair US measures.
- The US imposed tariffs on Chinese ships to support American shipping companies.
- New US tariffs also started on imported timber, kitchen cabinets, and furniture from China.
- China notified the US about new rare earth export controls and held talks on Monday.
- US Treasury Secretary Scott Bessent said President Trump plans to meet Chinese leader Xi Jinping in South Korea in late October.
These trade tensions have caused risk aversion in markets. Major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) are trading lower.
Solana Price Outlook: Possible Dead-Cat Bounce
Last Friday, Solana’s price dropped over 19% after hitting a descending trendline on the 4-hour chart. It recovered slightly over the weekend but faced resistance again on Tuesday, trading below $200.
This resistance aligns with the 100-day Exponential Moving Average (EMA) at $211.17 and the 61.8% Fibonacci retracement level at $211.56. This makes it a strong resistance zone.
The recent small price rise may be a dead-cat bounce within a larger downtrend. If Solana falls below daily support at $192.74, it could drop further toward last Friday’s low near $169.12.
The 4-hour Relative Strength Index (RSI) is at 45, below the neutral 50 level, showing bearish momentum. On the daily chart, Solana found support around an ascending trendline and rose over 17% by Monday. However, it dropped 6.9% on Tuesday after testing the 50-day EMA at $210.69.
If the price keeps falling, the next daily support is at $184.13. The daily RSI is 42 and moving down, indicating more bearish pressure. The Moving Average Convergence Divergence (MACD) showed a bearish crossover last Friday, which remains in effect.
If Solana recovers, it could rise toward the 50-day EMA at $210.69.
