Bloodbath, the cryptocurrency market, doesn’t seem to have an end. Bitcoin (BTC) has dropped to a price level of $109,000, wiping away all profits made this month. The BTC revision has led to a major crypto market facing significant liquidation. Solana (SoL) continues to market trends, falling below $200 for the first time since September 7th. According to Coingecko data, Solana prices can be 4% and 19.9% over the last 24 hours, 17.3% on the 14-day chart and 4.3% in the previous month.
Why is Solana’s price facing dip? Will you recover?
The latest crash in Solana (Sol) and the massive Crypto Market could be due to uncertainty around US monetary policy. Federal Reserve Chairman Jerome Powell highlighted inflation risks and slowing the job market in his recent speech earlier this week. Investors may be shunning their funds from dangerous assets such as cryptocurrencies and safe havens like gold, which recently reached a new history high. The stock market has also hit new records in recent days.
Another reason for Solana’s dip is the large number of token unlocks taking place this week. According to Tokenomist, approximately $517 million worth of cryptocurrencies have entered the market from September 22nd to September 29th. The move could have surprised investors from the crypto market. Solana (Sol) may have succumbed to potential sales pressure.
Solana (Sol) receives some support at the $195-$198 level. If your assets fall below this level, they could plummet to a price level of $180. Solana’s (SOL) price is likely to recover from DIP in the coming weeks. The Federal Reserve is set to roll out another round of interest rate cuts next month. Another rate cut could cause a market-wide gathering, which could potentially bring Sol back to a $250 price level.
