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Solana’s price has seen a sharp decline over the past month in line with the broader market correction, intensifying concerns as rumors of a potential investigation into the popular blockchain platform emerged recently.
Brewing a regulatory storm?
in Social media sharing On X (formerly Twitter), market expert Crypto Bitlord, who has a large following of over 300,000 people, hinted at the existence of a popular investigation into Solana. Read the post:
We hear rumors that SOL is under investigation and that a huge case is about to be announced. This has been brewing for weeks and it couldn’t come at a worse time.
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Although specific details were not revealed about the judicial authority or agency conducting the alleged investigation into the Solana case, the United States was at the forefront of the countries conducting the investigation. Continuous repression on the cryptocurrency industry since the collapse of cryptocurrency exchange FTX in late 2022.
The fallout from the FTX incident led to a series of lawsuits and charges against several industry executives. Prominent figures such as former Binance CEO Changpeng Zhao (CZ) and Coinbase have faced legal scrutiny.
A similar scenario can be drawn with XRP and Ripple, which have been involved in a complex legal standoff over the sale of cryptocurrency. Digital assets.
For Crypto Bitlord, who has contributed to projects such as Shiba Inu (SHIB), Floki Inu (FLOKI), Baby coin (PEPE), the potential impact on Solana’s price is significant. In response to skeptical comments, Bitlord warned: “Don’t cry when SOL becomes $3 again.”
However, until more news emerges regarding the alleged investigation, these statements remain just speculation. Solana’s founders have not issued any official statements regarding these rumours.
Solana price analysis
Solana price has experienced significant losses across different time frames, with declines of over 9%, 18%, and 22% in the past seven, fourteen, and thirty days, respectively. However, despite the downward trend, trading volume for SOL has remained strong, exceeding $2.8 billion in the past 24 hours alone, according to CoinGecko. Data.
Digital asset investment company CoinShares mentioned Notable inflows into several altcoins following recent price weakness, with Solana seeing inflows of over $2.7 million. This suggests that despite the price decline, some investors see potential value in SOL and are entering the market strategically.
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However, Solana price is facing a critical test as it approaches crucial support levels. Currently, SOL is trading just above the four-month support level at $127, which marked the upside when Solana’s price reached a yearly peak of $210 in mid-March.
if Selling pressure If this support intensifies and breaks, SOL could fall to $117, which represents the next important mid-term support level for the token.
Other support walls for SOL in case of a sustained downward move are at the $109 and $102 levels. These levels should be closely monitored by bullish investors looking to prevent Solana from falling below $100.
Featured image of DALL-E, chart from TradingView.com
