Traders React to Oil Price Surge, Sending SOL Down 8%

Solana’s SOL Drops 8.3% on Heavy Selling After U.S. Airstrikes on Iran

Solana’s SOL token plunged to $128.82 following intense selling triggered by U.S. airstrikes on Iranian nuclear sites, causing widespread market uncertainty.

Over the past 24 hours, SOL declined 8.33%, falling from $140.39 to $127.25. The sharpest drop occurred during the 13:00 hour, when heavy volume—over 4 million tokens—accompanied a swift price fall from $133.58 to $128.82, according to CoinDesk Research’s technical analysis.

The sell-off was driven by fears that the U.S. strikes could lead to the closure of the Strait of Hormuz, a vital oil shipping route. Such a move could push oil prices higher, increase inflation pressures, and reduce the chances of Federal Reserve rate cuts. This heightened risk-off sentiment typically benefits bitcoin at the expense of altcoins like SOL.

From a technical standpoint, SOL broke below key support levels, including the 200-day simple moving average near $149.54. Price action formed a descending channel characterized by lower highs and lower lows, signaling bearish momentum. Traders are watching the $120–$125 range as a potential support zone.

Technical Summary

• SOL dropped 8.1%, from $140.39 to $129.02, losing $11.37 in value.
• Intraday price range was 10.2%, between $141.14 and $126.85.
• The largest hourly drop occurred at 13:00, with volume surpassing 4 million tokens.
• A descending channel pattern formed, indicating ongoing bearish pressure.
• Resistance appeared near $133.80, capping attempts to rally.
• Support was found around $127.43, with a new intraday floor near $128.90.
• A volume surge between 15:25 and 15:27 pushed SOL below $129.30, extending the downtrend.
• Late trading saw SOL fluctuate between $130.42 and $128.85 amid persistent selling pressure.
• Attempts to recover near $130.05 repeatedly failed as selling volume increased.
• Heavy supply near $130.20 reinforced short-term bearish bias.