SOL, the native coin of the Solana blockchain, has underperformed in recent days as the trade tension between the United States and China escalates. The coin has dropped below the $200 mark, with market volatility still in display.
SOL dips below $200 as US-China trade tension triggers risk-off sentiment
Solana’s SOL has lost 1% of its value in the last 24 hours and is now trading at $195 per coin. The performance comes as the trade disputes between the US and China triggered uncertainty and a risk-off sentiment in the cryptocurrency market.
The Chinese government announced that its levies are designed to safeguard the country’s shipping industry from “discriminatory” measures. It will also ensure that the levies are applied to US-owned, operated, built, or flagged vessels but not to Chinese-built ships.
This comes in retaliation for US fees on Chinese ships, with the U.S. government claiming that it is in support of American shipping companies.
The Fed Chair is also expected to speak later today. Traders will focus on Powell’s speech to gain insights into the upcoming monetary policy meeting. However, it remains unclear whether the Fed will cut interest rates later this month, with no major economic data release in recent weeks thanks to the ongoing U.S. government shutdown.
SOL could dip lower amid a bearish market trend
The SOL/USD 4-hour chart is bearish and efficient as Solana has underperformed in recent weeks. The coin tanked by nearly 20% over the weekend, retesting $170 level for the first time in weeks.
However, it rallied on Monday to hit the $213 mark but failed to build on the momentum. It has now declined below $200 and could dip lower in the near term.
If Solana continues its correction and dips below the daily support at $192.74, it could extend the decline towards the weekend low of $171. The RSI of 48 means that bears remain in control. The MACD lines also remain within the bearish region, suggesting a further downward trend in the near term.
However, if the bulls regain control, SOL could retest the $213 high of Monday before rallying towards the $221 TLQ and resistance level at $221 over the next few hours or days.
