- Solana price dropped on Monday, finishing the day with a 9% fall.
- SOL price is facing more issues and challenges as we advance.
- With cryptocurrencies already battered, fewer investments are forecasted for SOL trading volume.
Solana (SOL) price is under pressure from Europe after news that the European Union created a framework for cryptocurrencies, limiting the possibility to make payouts towards investors without being taxed and making it more difficult for Europeans to invest in cryptocurrencies overall. To make matters even worse, the European bloc is facing the most significant energy crunch, putting households on rationing and passing on elevated prices to households not seen since the world wars. This means that European households will have no funds to allocate towards cryptocurrencies, making the industry miss out on billions of possible investment flows for at least this year.
The EU energy crunch makes SOL miss out on billions
Solana price will depend on the Americas, the Middle East and Asia to fill up the gap of the missing billions of investments from the EU bloc as households slash their spending and are shifting away their cash from cryptocurrencies. Even local investment funds are decreasing their stake in cryptocurrencies against their overall balance sheet. This means SOL price is missing a substantial part of the volume going forward.
SOL price will take another leg lower as that volume is very much needed to trigger a recovery. Expect to see price action fall back to the low of July and hit around $30.96, the low of June 30. From there, a stretched area with no support opens up and could see SOL dipping towards an even $26.00 with a new low for 2022 in the making. A significant level to mark up yet again is $18.66, which is a longer-term low and vital support level to watch.
SOL/USD Daily chart
A rebound or uptick looks unlikely, but it still could be in the cards. As investors usually buy dips during a recession, such capial moves could be the preposition for a rally towards $38.00. That would press against the orange ascending trend line and the 55-day Simple Moving Average this time. If bulls can break that downtrend, expect a quick test near $42.90, making it a nice 27% return.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: Bitcoin crumbles under German government transfers, Ethereum and Ripple erase gains
Bitcoin trades below $57,100 on Thursday as German government transfers continue, $76 million BTC moved to exchanges. Ethereum trades near $3,100 ahead of the upcoming SEC decision on the Spot Ethereum ETF.
Ripple traders take over $75 million in losses in July, XRP drops below key support
Ripple (XRP) price is under fresh selling pressure and tests key support at the June 7 low of $0.4508 on Thursday as whales are likely capitulating, according to on-chain data.
Bitcoin price declines as supply on exchanges rises
Bitcoin faced rejection at the daily resistance level of $63,956 on Monday, resulting in a 4.2% decline over the next two days. BTC’s price extends its downward move and falls below $58,000 on Thursday, adding more than 4% losses in the day.
Worldcoin is poised for 17% rally as as technical indicators signal bullish momentum
Worldcoin price finds support and bounces 9% from the weekly support level around $2.183. Technical analysis shows that WLD has formed a bullish divergence on a momentum indicator.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.