Solana Price Forecast: SOL recovers after hitting 2-month low amid US attack on Iran

Solana (SOL) recovers slightly, trading at around $134 at the time of writing on Monday after dipping to a two-month low of $126 the previous day. This price correction was triggered by the rising jitters as the US struck Iran over the weekend, sparking risk aversion in the crypto markets. The technical outlook turns bearish, and a daily close below $130 would confirm a correction toward the $118 mark.

Solana price dips as investor caution rises amid Trump’s strikes on Iran’s nuclear facilities

Solana price dipped nearly 14% last week, reaching levels not seen since mid-April. The rising tension in the Middle East primarily triggered this correction. The war between Iran and Israel has been ongoing for more than a week and took a new turn late Saturday as the news came in that the US attacked Iran’s three nuclear sites. 

The US strike on Iran has caused global risk sentiment to remain fragile, with Bitcoin reaching a low of $98,200 on Sunday, followed by Solana hitting a low of $126.

Iran's response to the US attack could be another event of concern this week, which raises the risk of spillover and a broader conflict in the Middle East and could trigger deeper losses in risky assets such as Solana. 

Solana Price Forecast: SOL reaches levels not seen since mid-April

Solana price faced rejection around the 200-day Exponential Moving Average (EMA) and closed below its daily support at $160 on June 12, declining 5.20% over the next two days. SOL recovered slightly but was again rejected by the daily level of $160 at the start of last week and declined by 14% until Sunday, reaching a low of $126. At the time of writing on Monday, it recovers slightly, trading around $134.

If SOL declines and closes below the 61.80% Fibonacci retracement (drawn at the April 7 low of $95.26 to a May 23 high of $187.73) at $130.58 on a daily basis. It could extend the decline to retest its next daily support at $118.10.

The Relative Strength Index (RSI) indicator reads 35 on the daily chart, nearing oversold conditions and indicating strong bearish momentum. Moreover, the Moving Average Convergence Divergence (MACD) showed a bearish crossover last week. It also displays rising red histogram bars below its neutral level, indicating bearish strength and suggesting the continuation of a downward trend.

SOL/USDT daily chart 

However, if SOL recovers, it could extend the recovery toward its next resistance level at $141.41.