coinjournal.net
- Solana price dropped 5% to near $83 on Friday.
- The altcoin fell as Bitcoin and Ethereum declined to $66,500 and below $1,990, respectively.
- Risk assets sank as Brent oil surged to $110 amid Iran war concerns.
Solana ($SOL) price has slipped more than 5% as altcoins mirror declines in Bitcoin ($BTC).
The downturn coincided with a dramatic surge in oil prices to $110 per barrel, fueled by geopolitical tensions in the Middle East, with President Donald Trump’s announcement of a deadline extension for Iran seemingly not assuaging sellers.
Iran has largely dismissed US claims that talks have shown progress.
Solana drops to $83 amid crypto dip on oil surge
Solana’s price plunged to a low of $83 during Friday’s session, marking a decline of over 5% within 24 hours.
This aligned with the broader crypto market’s vulnerability to macroeconomic shocks, with Bitcoin sliding to below $66,500.
$BTC’s drop below $67k marks the first time bulls have seen these levels since March 9.
Losses triggered massive long liquidations across top altcoins.
The sharp decline for $BTC came as oil prices topped $110 despite US President Donald Trump’s announcement of a 10-day extension to the deadline for Iran to open the Strait of Hormuz.
Trump had paused the move to strike Iran’s energy infrastructure by 5 days, but even then, the additional five days appear to have done little to soothe supply concerns.
US stocks faltered as the international benchmark Brent crude futures rose 2.7% to $110.94 a barrel.
Crude gains reversed earlier losses following the early March spike, which also saw $BTC prices sink to support.
As risk appetite got a fresh bump, Solana’s trading volume spiked 13% to over $4.1 billion.
The surge in intraday volume across major exchanges signals panic, as the unwinding of leveraged positions has led to significant losses for long positions.
Solana price outlook
From a technical standpoint, Solana’s descent to $83 breached the 50-day exponential moving average (EMA) at $87.50, a critical support that now risks further erosion toward the 200-day EMA near $78.
The relative strength index (RSI) flashed oversold territory at 28, hinting at a potential short-term rebound if oil volatility eases.
However, the moving average convergence divergence (MACD) histogram remains deeply negative, confirming bearish momentum tied to the $BTC correlation, which stands at 0.92 over the past month.
A sustained oil price above $110 could push $SOL toward $75, but a de-escalation in Hormuz tensions might spark a relief rally back to the $95-$100 level.
Investors might also be looking to monitor US inflation data, with this likely to dictate the crypto market’s next move.