Solana Price Plunges Below March Low – Could It Drop Further?

Christian Encila

2 years ago

3 mins read

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Solana (SOL) made headlines recently after being labeled as a “security” by the US Securities and Exchange Commission (SEC). As a result, SOL is facing challenges in its price movement.

In light of this regulatory setback, investors closely monitor SOL’s performance. According to CoinMarketCap, SOL is currently priced at $15.45, sustaining a seven-day slump of 23.13%.

Source: CoinMarketCap

As the market remains uncertain, one wonders: Will Solana be able to recover from its recent downturn and regain its upward momentum?

SOL Faces Steep Decline As Support Levels Are Breached

The past week has been challenging for Solana (SOL) as it experienced a significant decline, causing it to breach the crucial support zone ranging from $16.7 to $18.8.

This downward spiral was initiated by a weekend slump that coincided with Bitcoin’s (BTC) retest of $25,000. As SOL dropped below both the trendline resistance and March’s low of $16, it shifted into a bearish bias.

Solana price in a downward trajectory. Source: CoinMarketCap

For SOL to regain bullish momentum, it heavily relies on Bitcoin surpassing $26,600 and successfully crossing the $27,000 threshold. However, without this upward movement, the bulls could face challenges in clearing the confluence area situated near $17, which combines bullish order book support and trendline resistance.

A potential rejection at this critical juncture may trigger a further decline in SOL’s price, potentially leading it toward the support levels at $14.9 or even $12.8.

Solana Foundation Disagrees With SEC Label Of SOL As Security

In separate lawsuits filed on June 5 and 6 against popular cryptocurrency exchanges Binance and Coinbase, the SEC designated the SOL token as a security. The SEC’s classification was based on various factors, including the expectation of profits derived from the efforts of others, as well as the manner in which the tokens are utilized and promoted.

The Solana Foundation disagrees with the characterization of SOL as a security. We welcome the continued engagement of policymakers as constructive partners on regulation to achieve legal clarity on these issues for the thousands of entrepreneurs across the U.S. building in the…

— Solana Foundation (@SolanaFndn) June 10, 2023

Addressing the SEC’s classification of SOL as a security, the Solana Foundation took to Twitter to express its disagreement. In a statement, the foundation asserted, “The Solana Foundation disagrees with the characterization of SOL as a security.”

According to the SEC, the term “security” encompasses not only traditional investment instruments like stocks, bonds, and transferable shares but also extends to “investment contracts.”

SOL market cap currently at $6.16 billion. Chart: TradingView.com

By labeling SOL as a security, the SEC signals its intention to subject the token to regulations governing securities, which could have significant implications for Solana and its ecosystem.

The classification will likely prompt further scrutiny and discussions regarding the nature and regulatory status of cryptocurrencies in the evolving legal landscape.

Featured image from APKPure

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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