Solana price has been struggling to recover after crashing by more than 30% since the start of the month. SOL has been among the worst performers in the cryptocurrency sector this month following the recent sell-off in the sector. Even so, the altcoin has made some progress in its recovery journey, inching 4.48% higher in the past week. Solana has dipped by more than 21% in the past month but has remained 59% higher in the year to date.
Solana price has been among the laggards in the cryptocurrency sector this month against the backdrop of the SEC lawsuit against Binance and Coinbase and the Fed monetary policy outlook. Even so, the altcoin shows signs of recovery amid an increase in buying pressure. Solana’s total market cap has increased by nearly 3% over the last day to $6 billion, while its total volume traded over the same period, skyrocketed by 43%.
Investors had entered conservation mode around Solana earlier in the month in the wake of the sharp sell-off in the crypto market. The US Securities and Exchange Commission (SEC) lawsuit against crypto exchange heavyweights, Binance and Coinbase, saw the crypto market slip into its worst week so far this year. Solana price followed suit after the Wall Street regulator termed the asset as a security. Other digital currencies, including Polygon and Cardano, were also deemed as securities by the regulator.
Despite its attempt to recover from monthly lows, macroeconomic uncertainties as well as regulatory concerns, have continued to outweigh SOL’s gains. The Federal Reserve’s recent hawkish pause saw the crypto market pullback further last week. Investors are now eyeing the interest rate decision by the Bank of England (BoE) on Wednesday to gauge the economic outlook. Markets are also anticipating the Capitol Hill testimony by Fed Chair Jerome Powell later in the week.
Solana Price Technical Analysis
Solana price has been under intense pressure for the past few weeks, hovering around its lowest levels since March. The altcoin has failed to move above the 50-day and 200-day exponential moving averages, as well as the 100-day and 200-day simple moving averages. Even so, its Relative Strength Index (RSI) has managed to move above the signal line but remains below the neutral zone.
Therefore, amid macroeconomic uncertainties and regulatory concerns, the Solana price outlook remains uncertain. If the SOL price fails to clear the important resistance at $18.20, it could lead to more downside to the next support level at $15. Conversely, a move above the 50-day EMA will invalidate the bearish view.