Key takeaways
- SOL is the worst performer among the top 10 cryptocurrencies today, down 3.5% in the last 24 hours.
- Its poor rally can be attributed to Pump.fun’s account ban on X and the ongoing conflict in the Middle East.
Crypto market still reeling from the Middle East crisis
The cryptocurrency market has had a bearish few days, courtesy of the ongoing conflict between Iran and Israel. Bitcoin, the leading cryptocurrency by market cap, has lost 3.4% of its value over the past seven days and currently risks dropping below $105k. At press time, the price of Bitcoin stands at $105,688 per coin.
Thanks to the ongoing bearish performance, the total cryptocurrency market cap has dropped below $3.3 trillion.
SOL, Solana’s native coin, is one of the worst performers among the top 10 cryptocurrencies by market cap. While it is affected by the same fundamentals as the broader market, other catalysts have helped dampen SOL’s performance.
SOL dips to $150 on Pump.fun’s X ban
SOL is currently trading at $150.08, down 3.43% in the last 24 hours. Its poor performance can be attributed to the unexpected suspension of Pump.fun from X. Pump.fun is the leading memecoin launchpad on the Solana blockchain.
Social media platform X suspended the X accounts of Pump.fun, its co-founder, Alon Cohen, and several high-profile meme projects, including GMGN and ElizaOS. This was a major blow because Pump.fun had become a major driver of onchain activity and speculative momentum on Solana. Thousands of memecoins have launched on the Solana blockchain over the past few months, thanks to Pump.fun.
In addition to the Pump.fun X ban, the ongoing conflict in the Middle East is affecting the performance of Bitcoin, Solana, and other major cryptocurrencies.
SOL could test the $140 support level
While SOL is trading around $150 at the moment, it could dump to the $140 support level in the coming hours or days. Currently, SOL is forming a descending triangle, a bearish reversal pattern.
If SOL fails to bounce back after hitting the $140 support level, then the cryptocurrency could dump further and head towards the $110 psychological mark. Furthermore, the MACD is hinting at weakness, with the $140 support level could give way for a dump towards $110 in the near term.
Despite the ongoing bearish price action, SOL could bounce back if there is a ceasefire in the Israel-Iran conflict. Currently, capital is moving into the U.S. Dollar and Gold as safe-haven assets while risk-based assets like Bitcoin and Solana underperform. With a ceasefire, SOL could quickly reclaim the $170 resistance level.
