SOL plummeted to $184 in a single day! Three major bad news hit at once, is it a 'golden pit' or a 'bottomless hole'?
On August 18, the crypto market experienced a 'Black Monday,' with SOL dropping sharply, reaching a low of $184.
The three major black swan events were the direct triggers:
News: Three major bad news broke out simultaneously
Federal Reserve's 'interest rate bomb': The yield on the 10-year U.S. Treasury bond soared to a 15-year high, with the market expecting two more rate hikes in 2025.
SpaceX sells Bitcoin: Musk's company was reported to have dumped $373 million in Bitcoin, leading the 'king of coins' to collapse, dragging down SOL and other altcoins.
EU regulatory iron fist: The MiCA II bill mandates identity verification for non-custodial wallets, causing the privacy coin sector to plummet 18% in 24 hours, and SOL, as a mainstream coin, was also affected.
Technical aspect: Key support level lost, downward momentum not fully released
Trendline collapse: The green upward trendline was broken in the 'bearish' zone, completely dismantling the bullish defense line.
RSI oversold signal: RSI1 fell to 15.43, but the MACD histogram did not show significant convergence, indicating that the downward momentum has not been fully released, and there may still be room for further decline.
Key level contention: The support level at $173 has temporarily held, but there is significant pressure at the resistance level of $195 above. If it fails to break through $195, there may be a second test of the psychological level of $170.
Exclusive viewpoint: Bearish in the short term, bullish in the medium to long term
Short-term bearish: The Federal Reserve's interest rate hike cycle is not over, combined with the EU's regulatory upgrades, SOL may test the psychological level of $170. If it breaks below, it will trigger a large number of stop-loss orders, further pushing down the price.
Medium to long-term bullish: The Solana ecosystem continues to gain momentum, such as Helius updates allowing trading to earn SOL rewards. With this fundamental support, SOL still has long-term upside potential.
Operational advice: Respond with differentiated strategies
Aggressive: Lightly buy near $180, set stop-loss at $175, target at $185. Conservative: Wait for RSI to break above 50 or for MACD to show a golden cross before entering.
This crash is both a 'precise strike' from the news front and a 'necessary adjustment' from the technical front. Whether SOL can rebound in a 'V-shape' like before depends on the strength of the $170 support.
Are you stuck? Don't know when to enter? As always, if you're confused and helpless about what to do, tap on the avatar to comment. I need fans, and you need to participate.
