The Solana (SOL) market suffered from escalating geopolitical tensions in the Middle East, falling by around 7% in the past 24 hours toward $143 on Oct. 2.
The SOL price sell-off also occurred after a video showing former NSA intelligence contractor and whistleblower Edward Snowden criticizing Solana went viral on social media.
SOL/USDT daily price chart. Source: TradingView
Solana drops after Iran’s missile attack on Israel
Solana’s drop today is part of a broader market decline as traders de-risk their portfolios in response to heightened tensions between Israel and Iran.
The market is particularly concerned about potential escalations following missile barrages from Iran and the anticipation of Israel’s response. Israeli Prime Minister Netanyahu has vowed a “severe response,” and there’s growing speculation that Israel may target Iran’s nuclear facilities, a move that could escalate the conflict further.
As risk assets, cryptocurrencies like Solana are often the first to be sold off during such periods of uncertainty as traders rush to the safety of safe-haven assets like the US dollar.
US dollar index daily price chart. Source: TradingView
Only memecoins and scammers use Solana: Snowden
Solna’s price decline today further coincides with the viral video of Edward Snowden from Token2049 Singapore, in which he takes potshots at its centralization.
The former NSA contractor believes Solana backers have taken good ideas from the blockchain technology only to centralize it for the sake of better speed and scalability, as well as lower transaction costs.
Source: X
But, he argued, nobody is using blockchains like Solana except memecoin developers and scammers, adding:
“If anybody puts anything significant on Solana […], then it’s going to be a system with leverage that people can just take from you.”
SOL’s descending channel setup boosts sell-off sentiment
SOL’s decline today is furthermore a part of a price trend occurring inside its prevailing descending triangle pattern.
Notably, the cryptocurrency has declined multiple times after testing the triangle’s upper trendline as resistance. Afterward, it finds support at the triangle’s lower trendline, coinciding with the 0.382 Fibonacci retracement line at around $132.
SOL/USDT weekly price chart. Source: TradingView
The descending triangle pattern may cause SOL to decline toward the $130-132 area in October. Nonetheless, traditional analysts consider such a setup bullish when it occurs after a strong uptrend, given that the price breaks decisively above the upper trendline.
Related: Solana DApps volume increased by 46% in a week — Is $180 SOL the next stop?
As a rule, if SOL breaks above the said resistance area, its price will likely rise by as much as the triangle’s maximum height. That brings Solana’s upside target for October—or November—to over $285.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.