Solana price drops as BTC/ETH fall amid oil surge to $110
Solana (SOL) price drops more than 5% to around $83 as the broader market weakens. The selloff tracks declines in Bitcoin (BTC) to below $66,500 and Ethereum (ETH) to under $1,990.
The move is linked to a sharp macro shock: Brent crude surged to about $110 per barrel on renewed Middle East Iran-war concerns. Despite Donald Trump extending a deadline related to Iran’s Strait of Hormuz actions, sellers kept pressure on risk assets, pulling SOL lower alongside BTC’s slump.
Liquidations accelerated. Losses triggered large long liquidations across top altcoins, and SOL spot/intraday activity rose, with trading volume up roughly 13% to over $4.1B—often a sign of leveraged positioning unwinding.
From a technical view, Solana price drops below the 50-day EMA near $87.50, increasing downside risk toward the 200-day EMA around $78. RSI fell into oversold territory (~28), which can support a short-term rebound if oil volatility eases. However, MACD histogram remains deeply negative, consistent with bearish momentum and SOL’s high BTC correlation (0.92 over the past month).
Key catalysts to watch: whether oil sustains above $110 and upcoming US inflation data, both likely to shape the next direction for SOL.
Bearish
The news is bearish because the dominant driver is a macro risk-off impulse rather than Solana-specific fundamentals. Solana price drops alongside BTC and ETH, with oil rising to ~$110 and prompting fresh long liquidations. Volume jumping ~13% to $4.1B suggests leveraged unwinds—typically a downside accelerant.
Technically, SOL breaking below the 50-day EMA (~$87.5) while MACD remains deeply negative implies rallies may struggle until momentum improves. Although RSI oversold (~28) hints at a potential short-term relief bounce, the article’s setup favors continued selling if oil stays elevated.
Historically, crypto drawdowns tied to crude spikes and geopolitical headlines (when risk assets reprice together) often produce choppy early bounces but persist until the macro driver cools. In the short term, traders may reduce long exposure and wait for confirmation (oil easing, BTC stabilizing, SOL reclaiming key moving averages). In the longer term, if the Hormuz tension de-escalates and inflation prints reduce rate-hike fears, SOL could recover toward prior resistance (the $95–$100 zone mentioned).