Solana’s SOL token tumbled 8.33% in the last 24 hours, closing at $128.82, amid a storm of geopolitical tensions that sent ripples through the cryptocurrency market. The slide from $140.39 to a low of $127.25 was marked by significant sell pressure, particularly around 1 p.m. when trading volumes surged past 4 million. The catalyst? Reports of U.S. military action against Iranian nuclear sites, a move that sparked fears of a potential closure of the Strait of Hormuz—a crucial artery for global oil supply.
Geopolitical Tensions Shake Crypto Markets
The news rattled investors, fueling a broad risk-off sentiment. The possibility of disrupted oil flows through the Strait of Hormuz could send oil prices skyward, potentially stoking inflationary pressures. This scenario would likely dampen prospects for any imminent Federal Reserve rate cuts, extending the current environment of caution in financial markets. As history suggests, Bitcoin often commands a larger share of the crypto market during such uncertain times, leaving altcoins like SOL vulnerable to sharper corrections. This trend is mirrored in the meme coin sector, as detailed in our recent coverage of Dogecoin’s dive amid geopolitical tensions.
“Traders are understandably jittery,” noted Clara Jensen, a senior analyst at Crypto Insights. “The geopolitical landscape is precarious, and assets with perceived higher risk, like altcoins, are bearing the brunt.”
Technical Breakdown: SOL’s Bearish Momentum
SOL’s decline wasn’t just about external shocks; it also breached significant technical thresholds. The token slipped below its 200-day simple moving average, a level that stood near $149.54, signaling a bearish tilt in market sentiment. Throughout the session, SOL struggled to maintain any upward momentum, consistently printing lower highs and failing to sustain rebounds.
CoinDesk Research’s technical analysis painted a grim picture. SOL experienced a notable $11.37 drop from $140.39 to $129.02 during the analyzed period, with the most pronounced hourly drop at 1 p.m. when prices plummeted from $133.58 to $128.82 on a hefty volume of 4.03 million. A descending channel formed, characterized by lower highs and lows, echoing a classic bearish structure. Key resistance was identified at $133.80, thwarting multiple attempts at recovery.
Watching the Support Zone: A Glimmer of Hope?
Despite the bearish outlook, some traders are eyeing the $120–$125 range as a potential support zone. Initial support appeared at $127.43, with a tentative floor forming at $128.90. However, late-session trading saw SOL fluctuate between $130.42 and $128.85, under consistent selling pressure. Efforts to recover near $130.05 repeatedly faltered, with each rejection accompanied by rising volumes—a clear indication of entrenched bearish sentiment.
“There’s significant supply concentration around $130.20,” explained Mark Li, a technical strategist at Blockchain Analytics. “This reinforces the current short-term bearish momentum, but should we see sustained support in the $120–$125 range, it could trigger a technical rebound.”
Looking Ahead: Market on Edge
As June 2025 unfolds, the crypto market remains on tenterhooks. The specter of geopolitical instability looms large, with implications that extend beyond immediate price action. Traders and investors will be closely monitoring developments in the Middle East, as any escalation could further jolt market dynamics. The interplay between geopolitical events and macroeconomic factors, such as potential changes in Fed policy, could shape the trajectory of cryptocurrencies in the weeks to come. Notably, while SOL struggles, XRP has shown resilience, leading gains among crypto majors despite ongoing tensions.
While SOL’s current predicament underscores the volatility inherent in crypto markets, it also raises questions about the resilience of altcoins during periods of global uncertainty. As the sector grapples with these challenges, one thing is clear: the coming weeks promise to be anything but dull.
Source
This article is based on: Solana’s SOL Falls 8% as Traders Brace for Fallout From a Spike in Oil Price
Further Reading
Deepen your understanding with these related articles:
- Crypto Daybook Americas: Bitcoin Holds Above $100K as Iran, Israel Trade Blows
- Bitcoin Price Holds Steady Amid Iran Conflict Fears
- BNB Hits Resistance at $654 as Israel-Iran Conflict Rattles Crypto Traders
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
