Solana Price Braces For Potential Crash Below $100 Amid Investigation Rumors
25 June 2024 - 9:00AM
NEWSBTC
The Solana price has experienced a sharp decline over the past
month in line with the broader market correction, intensifying
concerns as rumors of a potential investigation into the popular
blockchain platform have recently surfaced. Regulatory Storm
Brewing? In a social media post on X (formerly Twitter),
market expert Crypto Bitlord, who has a considerable following of
over 300,000 people, hinted at a rumored investigation into Solana.
The post read: We are hearing rumors that SOL is under
investigation and a huge case is about to be made public. This has
been brewing for weeks and couldn’t come at a worse time. Related
Reading: Bitcoin Price Crashes Below $61,000: The Main Reasons
While no specific details about the jurisdiction or agency
conducting the alleged investigation into Solana have been
disclosed, the United States has been at the forefront of an
ongoing crackdown on the cryptocurrency industry since the collapse
of the FTX crypto exchange in late 2022. The aftermath of the FTX
incident resulted in a series of lawsuits and charges against
various industry executives. Notable figures like Binance’s former
CEO Changpeng Zhao (CZ) and Coinbase have faced legal
scrutiny. A comparable scenario can be drawn with XRP and
Ripple, as they have been engaged in a complex legal showdown over
the sale of the digital asset. For Crypto Bitlord, who has
contributed to projects such as Shiba Inu (SHIB), Floki Inu
(FLOKI), and Pepe Coin (PEPE), the potential impact on the Solana
price is significant. In response to skeptical comments, Bitlord
warned, “Don’t cry when SOL is $3 again.” However, until further
news emerges regarding the alleged investigation, these statements
remain speculative. Solana’s founders have made no official
statements regarding these rumors. Solana Price Analysis The Solana
price has experienced significant losses across various time
frames, with declines of over 9%, 18%, and 22% in the past seven,
fourteen, and thirty days, respectively. However, despite the
downward trend, trading volume for SOL has remained robust,
surpassing $2.8 billion in the past 24 hours alone, according to
CoinGecko data. Digital asset investment firm CoinShares reported
notable inflows into various altcoins following the recent price
weakness, with Solana seeing inflows of over $2.7 million. This
suggests that despite the price decline, some investors see
potential value in SOL and are strategically entering the market.
Related Reading: Toncoin On Fire: Crypto Explodes To All-Time High
– Can It Hit $10? Nevertheless, the Solana price faces a critical
test as it approaches crucial support levels. Currently, SOL is
trading just above a four-month support level at $127, which marked
the uptrend when the Solana price reached a yearly peak of $210 in
mid-March. If selling pressure intensifies and this support
is broken, SOL could retrace down to $117, representing the token’s
next significant mid-term support level. Other support walls for
SOL in the event of a sustained bearish move are at the $109 and
$102 levels. These levels should be watched closely by bullish
investors looking to prevent Solana from falling below $100.
Featured image from DALL-E, chart from TradingView.com
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