#Crypto Downturn: Hold or Sell? Solana (SOL): Worst drop in 3 years, will the US dollar kill Bitcoin (BTC)? Shiba Inu (SHIB) surprise...

Solana recently witnessed the largest price drop in three years, falling by 45% from its recent peak. Due to intense selling pressure, the asset - which was among the best performers during the previous bull run - is currently causing investor concerns about its short-term future. Sol's decline points to a strong downtrend as it fell below the 200-day moving average, which was clearly broken by key support levels on the recent price chart.
This action means that buying interest has been significantly overwhelmed by selling pressure, which may have been exacerbated by general market concerns and recent decline in investor risk appetite. The price is now testing levels around $170 after dropping below $190, which is a critical support area in the past. According to the Relative Strength Index (RSI), the asset has moved into the overbought zone, which may signal a relief rebound.
With the break of the 200-day moving average and the failure to hold important psychological levels like $200, there is now more selling pressure. The support range between $160 and $170 is a critical area to watch. Further declines to $150 or lower could be expected if Solana fails to hold this area. Instead, the bullish momentum will need to reclaim the 200-day moving average and rise above $190.
Bitcoin under pressure
A crucial moment awaits Bitcoin as the US Dollar Index (DXY) shows signs of strength, which could threaten Bitcoin's upward potential. Historically, there has been an inverse relationship between Bitcoin and the dollar index: when the dollar rises, Bitcoin and other risky assets usually fall. As DXY continues to trade above 106, it is unclear where Bitcoin is headed in the future.
Bitcoin is currently struggling to break out of its consolidation range, trading around $95,700. With resistance near $100,000 and support forming at $93,500, the asset has been moving sideways. If Bitcoin fails to hold this support level, a drop towards $90,000 could be imminent.
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Regarding a basket of foreign currencies, the dollar has recently regained strength from its moving averages. This suggests the possibility of diverting liquidity away from Bitcoin and other digital assets due to the renewed strength of the dollar. Bitcoin may have difficulty sustaining any upward recovery if the dollar index continues on its upward path. Bitcoin may move towards the 200-day moving average, which is close to $85,000, if it falls below $93,500, potentially leading to a more severe correction.
Bullish scenario: Breaking above $100,000 may reignite bullish sentiments if Bitcoin manages to maintain its current range and the dollar weakens. However, traders remain cautious due to ongoing overall economic uncertainty. Bitcoin's next move will likely depend on how the US dollar performs in the coming weeks.
If the strength of the dollar continues, there may be more pressure on Bitcoin sellers. But if the overall economic conditions change in favor of riskier assets, Bitcoin may gain the momentum it needs to surpass significant resistance levels.
Shiba Inu finds hope
Speculation about a potential recovery has been sparked due to Shiba Inu's current hovering around its recent lows. Shiba Inu may still be able to reverse its downward trend although the market does not show much upward momentum if it forms a double bottom pattern around $0.00001485.
Despite the ongoing selling pressure, the asset has not been able to surpass significant resistance levels such as the 26-period moving average. If Shiba Inu manages to maintain the current support area and attract new buying interest, a technical rebound may occur. Although double bottom formations historically signal a strong reversal, the current market uncertainty and low trading volume make this move unlikely in the near future.
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In order to confirm the recovery attempt and possibly push it towards the next resistance level at $0.000020, Shiba Inu must regain strength above $0.00001713 to achieve the bullish scenario. Although the current market condition suggests a slim chance of a rapid breakthrough, a rise to $0.000022 may occur if buying pressure increases.
On the downside, more declines may occur if the $0.00001485 support is not maintained. The double bottom setup would become invalid if there is a break below this level, potentially pushing Shiba Inu to $0.00001300 or even lower.
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#SOL Price Analysis