- Solana price drops as Bitcoin dominance leads to weakness in altcoins.
- The altcoin failed to hold key support levels between $90 and $97.
- The key support of $83 is at risk, and a breakout could push SOL to $80.
Solana’s price is under pressure as value continues to fall amid a broader shift in the cryptocurrency market. Bitcoin’s rise in dominance is the main reason for this major shift.
Investors are moving money away from altcoins and into Bitcoin, affecting prices. This type of “risk off” sentiment typically affects riskier assets like Solana more strongly. With overall market activity also slowing, bearish sentiment is high.
Bitcoin dominance affects Solana price
Currently, altcoins like Solana are at risk due to changing investor sentiment. Solana price is now in the red zone, recording a notable 3% drop in a single day. It is trading at $85.91 at press time, according to CoinMarketCap data,Sol Sol-3.26%It fell by 4% in one month. Despite the recent decline, the currency is still up 4.3% in a month, leaving room for optimism.
It is worth noting that Bitcoin’s increasing dominance in the cryptocurrency market is putting clear pressure on Solana, as more investors are shifting their capital to Bitcoin. BTC.D is currently at 60.3%, up 0.18%. This shift is one of the main reasons for the current negative trend in Solana and many other altcoins.
But what is the reason for this change? It is worth noting that in times of uncertainty, it is common for traders to move their funds from altcoins to Bitcoin, because they feel it is safer. As tensions rise between the United States and Iran with Iran closing the Strait of Hormuz, investors are looking for safe haven assets, including Bitcoin.
The broader cryptocurrency market is also showing signs of weakness. This is understood from lower trading volumes and lower risk appetite. As activity slows, altcoins like Solana tend to face stronger selling pressure compared to Bitcoin. This creates a trend where even small negative signals can push Solana’s price lower.
Raising pressure and key levels put SOL in check
It is worth noting that the recent decline in Solana’s price is partly due to pressures exerted by the financial derivatives market. About $9.4 million of long positions were liquidated in just two hours. This means that traders who were betting on higher prices were forced to sell their tokens. This type of forced selling usually adds additional pressure, pushing cryptocurrency prices down even further.
Meanwhile, SOL failed to break the critical $90-97 resistance area. after Briefly touched around $90the price was pushed down, confirming that this area forms a strong barrier. It is now trading below the $87 level, indicating weak short-term momentum.
Key Solana Price Levels to Watch Now
It is worth noting that Solana’s short-term price trend depends heavily on a few important price areas. As long as SOL remains above the $83-$85 support range, SOL has a chance to bounce back and test the $90 resistance level again.
But if the price drops below $83, things could get weaker. This could push Solana’s price down to $80. In the bigger picture, Bitcoin is still under control. If Bitcoin’s dominance continues to rise, it could be even more damaging to altcoins like Solana.
