#Solana Price Plunges Below $165: What Caused the Crash and What Comes Next?

Solana ($SOL ) has taken a hit following its strong July performance, falling sharply in early August. But what's behind the crash, and is a recovery in sight? Let's break it down.

Solana's Crash: What Triggered It?

After riding a wave of optimism throughout July—largely due to speculation surrounding a potential Solana ETF—momentum dried up. Here's a breakdown of key reasons for SOL’s pullback:

#ETF Rumors Lost Steam: Hype around a Solana ETF, sparked by market chatter and partially fueled by the success of Bitcoin ETFs, began to fade as no official confirmation materialized. Without a real product on the horizon, speculative buyers started cashing out.

Federal Reserve's Interest Rate Pause: The Fed’s decision to hold interest rates steady rather than cut them removed a potential bullish catalyst. This led to market-wide risk-off sentiment, impacting altcoins like SOL more than Bitcoin or Ethereum.

Bitcoin’s Decline: As $BTC corrected and dipped below $61,000, it dragged the entire altcoin market down. SOL followed suit, dropping over 6.6% on the week, breaking below crucial support levels in the process.

SOL Technical Breakdown:

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