Solana Price Braces For Potential Crash Below $100 Amid Investigation Rumors

Solana Price Faces Uncertain Future Amid Investigation Rumors

The Solana price has been tumbling in recent weeks, mirroring the broader market correction. Concerns have escalated following rumors of a potential investigation into the blockchain platform.

Regulatory Scrutiny

Market expert Crypto Bitlord, with a significant following on social media, hinted at an impending investigation into Solana. The post suggested that the investigation could be made public soon.

No details about the jurisdiction or agency involved have been released, but the US has been cracking down on the cryptocurrency industry after the collapse of FTX in late 2022. Legal actions have been taken against industry executives, including Changpeng Zhao (CZ) of Binance and Coinbase.

Solana's Price Impact

The potential impact of an investigation on Solana's price, according to Crypto Bitlord, could be severe. However, these statements remain speculative until further news emerges. Solana's founders have not made any official comments.

Price Analysis

Solana's price has fallen significantly across time frames, with declines of over 9%, 18%, and 22% in the past seven, fourteen, and thirty days, respectively. Despite the downturn, trading volume has been robust, exceeding $2.8 billion in the past 24 hours.

CoinShares has reported inflows into various altcoins, including Solana, amounting to over $2.7 million. This indicates that some investors see value in SOL despite the price drop.

However, the Solana price faces a critical test as it nears critical support levels. Currently, it trades just above a four-month support at $127, which marked the uptrend when SOL reached a yearly peak of $210 in March.

If selling pressure increases and support is breached, SOL could retrace to $117, a significant mid-term support level. Other support levels are at $109 and $102. Bullish investors should monitor these levels to prevent Solana from falling below $100.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice.