The Solana price has experienced a pointy decline over the past month in keeping with the broader market correction, intensifying concerns as rumors of a possible investigation into the favored blockchain platform have recently surfaced.
Regulatory Storm Brewing?
In a social media post on X (formerly Twitter), market expert Crypto Bitlord, who has a substantial following of over 300,000 people, hinted at a rumored investigation into Solana. The post read:
We’re hearing rumors that SOL is under investigation and an enormous case is about to be made public. This has been brewing for weeks and couldn’t come at a worse time.
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While no specific details in regards to the jurisdiction or agency conducting the alleged investigation into Solana have been disclosed, america has been on the forefront of an ongoing crackdown on the cryptocurrency industry for the reason that 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 could be drawn with XRP and Ripple, as they’ve been engaged in a fancy legal showdown over the sale of the digital asset.
For Crypto Bitlord, who has contributed to projects equivalent to Shiba Inu (SHIB), Floki Inu (FLOKI), and Pepe Coin (PEPE), the potential impact on the Solana price is important. In response to skeptical comments, Bitlord warned, “Don’t cry when SOL is $3 again.”
Nevertheless, 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 Evaluation
The Solana price has experienced significant losses across various time frames, with declines of over 9%, 18%, and 22% previously seven, fourteen, and thirty days, respectively. Nevertheless, despite the downward trend, trading volume for SOL has remained robust, surpassing $2.8 billion previously 24 hours alone, in accordance with 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 implies that despite the worth decline, some investors see potential value in SOL and are strategically entering the market.
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Nevertheless, the Solana price faces a critical test because 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 all the way down to $117, representing the token’s next significant mid-term support level.
Other support partitions for SOL within the event of a sustained bearish move are on the $109 and $102 levels. These levels must be watched closely by bullish investors trying to prevent Solana from falling below $100.
The day by day chart shows SOL’s price trending downwards. Source: SOLUSD on TradingView.com
Featured image from DALL-E, chart from TradingView.com