- The Solana price declines as Bitcoin dominance triggers altcoin weakness.
- The altcoin failed to hold key support levels of $90-$97.
- Key $83 support is at risk, and a breakdown could push SOL to $80.
The Solana price is under pressure as the value continues to drop amid a broader shift in the crypto market. Rising Bitcoin dominance is the major reason for this significant shift.
Investors are moving funds away from altcoins and into Bitcoin, impacting the prices. This kind of “risk-off” sentiment typically hits higher-risk assets like Solana harder. As the overall market activity also slowed down, the bearish sentiment is high.
Bitcoin Dominance Weighs on Solana Price
Currently, altcoins such as Solana are at risk due to changing investor sentiment. The Solana price is now in the red zone, marking a notable plummet of 3% in a day. Trading at $85.91 at press time, as per CoinMarketCap data, SOL SOL1.07%is down by 4% in a month. Despite the recent pullback, the token is still up 4.3% in a month, leaving room for optimism.
Significantly, Bitcoin’s growing dominance in the crypto market is putting clear pressure on Solana, as more investors are shifting their capital into BTC. The BTC.D is currently at 60.3%, up 0.18%. This shift is one of the major reasons for the current negative trend in Solana and many other altcoins.
But what is the reason for this change? Notably, at times of uncertainty, it is usual for traders to move their funds from altcoins to Bitcoin, as they feel it is safer. As the US-Iran tensions are escalating with Iran’s closure of the Strait of Hormuz, investors are looking for safe-haven assets, including BTC.
The broader crypto market is also showing signs of weakness. This is understood from lower trading volumes and reduced risk appetite. As activity slows down, altcoins like Solana tend to face stronger selling pressure compared to BTC. This creates a trend where even small negative signals can push the Solana price lower.
Leverage Pressure and Key Levels Put SOL Under Watch
It is worth noting that the Solana price’s recent decline is partly due to pressure from the derivatives market. Around $9.4 million in long positions were liquidated in just 2 hours. This means that traders who were betting on higher prices were forced to sell their tokens. This kind of forced selling usually adds extra pressure, pushing crypto prices further down.
At the same time, SOL failed to break above the critical $90-$97 resistance zone. After briefly touching around $90, the price was pushed back down, confirming this area as a strong barrier. It is now trading below the $87 level, which shows that short-term momentum has weakened.
Key Solana Price Levels to Watch Now
Notably, the Solana price’s short-term direction depends heavily on a few important price zones. As long as the Solana price stays above the $83-$85 support range, SOL has a chance to bounce back and test the $90 resistance again.
But if the price drops below $83, things could turn even weaker. This could push the Solana price further down to $80. At the bigger picture, Bitcoin is still in control. If Bitcoin dominance keeps rising, it could be more detrimental for altcoins like Solana.
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