• Solana price drops 8% as tail risk inflates during the ASIA PAC session.
  • SOL price sees traders reshuffle positions on the back of risk events in the coming days.
  • Expect to see SOL price touch base at S1 support with the risk of plunging another 28% over the weekend.

Solana (SOL) price action is getting hammered in the ASIA PAC session as support breaks down as a result of inflated tail risks leading to traders reassessing their positions. The Fed’s Jackson Hole Symposium is in the limelight focusing traders on it's so-far hawkish game plan which is a negative environment for cryptocurrencies to rally in, and some geopolitical tensions are flaring up again as Putin and Xi are set to attend the G20 meeting together, with a possible side-meeting expected between the two to discuss Ukraine and Indonesia which could see investors pull their money out crypto into cash. Global cryptocurrencies are taking a step back due to these risks, and this could see SOL price tanking another 28% over the weekend towards the low of 2022.

SOL price could hit $26 over the weekend

Solana price has taken a nosedive in the ASIA PAC session this morning on the back of the Fed Minutes released on Wednesday, which showed no strong conviction that the Fed will want to start to slow down or cut rates anytime soon. A further catalyst came from the headline risk that Xi and Putin would attend the G20 meeting, sparking geopolitical tensions around Ukraine and Indonesia. With this sudden big balloon of tail risks, price action could only go one way: down. 

SOL price instantly broke through support from the orange ascending trend line and the 55-day Simple Moving Average at $39.53. Bulls did not even get the chance to pull price action above it and instead received an instant rejection and firm decline. Price action will probably reach $34 by this evening, around the monthly S1, with the risk that the full summer rally will evaporate over the weekend and see SOL price drop back to $26, the low of 2022.

SOL/USD Daily chart

SOL/USD Daily chart

A swift throwback and recovery looks unlikely, seeing that bearish sentiment appears to have extended into the European session  and there are no real events that could spin a turnaround for SOL price. Bulls are advised to await a bounce off the monthly S1 support at $34 before expecting a return to $40, and then a test of the top end, and break back above the 55-day SMA and the orange ascending trend line. That could mean a 17% bounce which bulls will gladly take on. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC’s Q3 close and what to expect in Q4?

Bitcoin Weekly Forecast: BTC’s Q3 close and what to expect in Q4?

Bitcoin price is trading above two crucial levels, suggesting a stable foothold. Combining this outlook with a bullish divergence signal, BTC holders should expect a favorable outcome. However, since the third quarter will end in a few hours, there is bound to be abnormal volatility in the market, which could trigger massive moves in either direction, so investors need to be cautious. 

More Bitcoin news

Shiba Inu price: Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shiba Inu price: Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shytoshi Kusama, the project lead for Shiba Inu, has dropped a teaser about Shiba Eternity for the SHIB community. Proponents expect the launch of the collectible card game to be a bullish catalyst for SHIB.

More Shiba Inu News

Staking is coming to Chainlink this December as LINK price stands firm

Staking is coming to Chainlink this December as LINK price stands firm

LINK is trying to find its feet in the wake of declines that followed its rejection from resistance at $8.40. Bulls have managed to sustain a generally up-trending market and Chainlink is up nearly 17.50% from its September low at $6.56.

More Chainlink News

Ethereum Classic bulls take charge, a retest of $30 on the cards

Ethereum Classic bulls take charge, a retest of $30 on the cards

Ethereum Classic price ranges with no directional bias in sight. This trend could continue unless Bitcoin decides to do something. Regardless, investors should prepare for a minor downtrend before ETC rallies. 

More Ethereum Classic news

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin price has developed a bullish divergence with RSI, hinting at more upside. Despite the optimistic technicals, investors should expect volatile swings before the end of the third quarter of 2022. 

Read full analysis

BTC

ETH

XRP