Solana (SOL) has fallen back below $80. The asset attempted to regain the coveted $100 price level in May, but was unsuccessful. CoinCodex SOL statistics show that Solana is trading in the red zone across all time frames. The seventh-largest cryptocurrency by market capitalization was down 2.5% on the daily chart and 5.4% week-on-week. Let’s discuss whether you should be concerned about SOL’s recent crash.
Why did Solana drop below $80?
The last time Solana (SOL) traded near current levels was in early April of this year. This price adjustment was made in response to the failure of peace negotiations between the United States and Iran. Both countries are calling for the Strait of Hormuz to be closed. This development could cause oil prices to rise on a global scale. Such a scenario would have a negative impact on inflation statistics.
Solana (SOL) has been on a downward trajectory since last month. US inflation statistics are already higher than expected in April 2026. The latest US and Iranian developments could put further pressure on the economy. The Fed may be forced to keep interest rates on hold. If this trend continues, the Fed may decide to raise interest rates. Such a development could cause Solana (SOL) to face further selling pressure.
Should I be concerned?
Solana (SOL) is one of the most resilient cryptocurrency assets on the market. The recent collapse in SOL is definitely a cause for concern. However, it is far from the SOL crash in 2022. After the FTX collapse in November 2022, the price of SOL fell to less than $10. SOL has recovered significantly from its 2022 lows. Since then, the asset has hit multiple all-time highs.
Solana (SOL) is likely to continue its bearish trajectory for the foreseeable future. Assets may not recover until the larger cryptocurrency market improves. The crypto sector is currently dependent on larger macroeconomic developments. Until the conflict between the US and Iran ends, we may not see any significant positive movement in the crypto market.
(Tag translation) Solana
