Solana Worth Braces For Potential Crash Under $100 Amid Investigation Rumors

The Solana worth has skilled a pointy decline over the previous month consistent with the broader market correction, intensifying considerations as rumors of a possible investigation into the favored blockchain platform have just lately surfaced.

Regulatory Storm Brewing? 

In a social media post on X (previously Twitter), market skilled Crypto Bitlord, who has a substantial following of over 300,000 individuals, hinted at a rumored investigation into Solana. The put up learn:

We’re listening to rumors that SOL is beneath 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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Whereas no particular particulars concerning the jurisdiction or company conducting the alleged investigation into Solana have been disclosed, the USA has been on the forefront of an ongoing crackdown on the cryptocurrency trade because the collapse of the FTX crypto trade in late 2022.

The aftermath of the FTX incident resulted in a sequence of lawsuits and expenses towards varied trade executives. Notable figures like Binance’s former CEO Changpeng Zhao (CZ) and Coinbase have confronted authorized scrutiny. 

A comparable state of affairs may be drawn with XRP and Ripple, as they’ve been engaged in a posh authorized showdown over the sale of the digital asset.

For Crypto Bitlord, who has contributed to initiatives corresponding to Shiba Inu (SHIB), Floki Inu (FLOKI), and Pepe Coin (PEPE), the potential affect on the Solana worth is important. In response to skeptical feedback, Bitlord warned, “Don’t cry when SOL is $3 once more.”

Nevertheless, till additional information emerges concerning the alleged investigation, these statements stay speculative. Solana’s founders have made no official statements concerning these rumors.

Solana Worth Evaluation

The Solana worth has skilled vital losses throughout varied time frames, with declines of over 9%, 18%, and 22% prior to now seven, fourteen, and thirty days, respectively. Nevertheless, regardless of the downward development, buying and selling quantity for SOL has remained sturdy, surpassing $2.8 billion prior to now 24 hours alone, in line with CoinGecko data.

Digital asset funding agency CoinShares reported notable inflows into varied altcoins following the latest worth weak point, with Solana seeing inflows of over $2.7 million. This implies that regardless of the value decline, some buyers see potential worth in SOL and are strategically coming into the market.

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Nonetheless, the Solana worth faces a essential check because it approaches essential assist ranges. Presently, SOL is buying and selling simply above a four-month assist degree at $127, which marked the uptrend when the Solana worth reached a yearly peak of $210 in mid-March. 

If selling pressure intensifies and this assist is damaged, SOL might retrace all the way down to $117, representing the token’s subsequent vital mid-term assist degree.

Different assist partitions for SOL within the occasion of a sustained bearish transfer are on the $109 and $102 ranges. These ranges ought to be watched carefully by bullish buyers seeking to forestall Solana from falling beneath $100.

Featured picture from DALL-E, chart from TradingView.com