Solana price drops to $110 as BTC and ETH slide amid oil surge.
Solana prices fell 5% to $83 on Friday. The altcoin fell as Bitcoin and Ethereum fell to $66,500 and below $1,990. Risky assets fell as Brent oil rose to $110 amid fears of a war with Iran.
As altcoins mirror Bitcoin (BTC), the price of Solana (SOL) has fallen by more than 5%.
This decline, coupled with oil prices rising above $110 per barrel, does not seem to have convinced sellers as President Donald Trump extended the deadline for Iran due to geopolitical tensions in the Middle East.
Iran has strongly rejected the US talks, saying the talks have shown progress.
Solana drops to $83 amid crypto dip on oil surge
During Friday's session, Solana's price dropped to $83, down more than 5% in 24 hours.
This is consistent with the broader crypto market's vulnerability to macroeconomic shocks, and Bitcoin has slipped below $66,500.
BTC's fall below $67k is the first time the bulls have seen these levels since March 9th.
Losses have led to long liquidity in top altcoins.
Despite US President Donald Trump's announcement of a 10-day extension to Iran's opening of the Strait of Hormuz, oil prices hit $110 as BTC fell sharply.
Trump halted the move to strike Iran's energy infrastructure by 5 days, but after that, the extra five days didn't seem to do anything to ease supply concerns.
U.S. stocks tumbled as global benchmark Brent crude futures rose 2.7 percent to $110.94 a barrel.
Crude's gains reversed earlier losses following an early March rally, which BTC prices fell to support.
As risk appetite reached new heights, Solana's turnover rose 13 percent to $4.1 billion.
The increase in intraday volume on major exchanges reflects fear, as unwinding of leveraged positions resulted in significant losses for long positions.
Solana Price View
From a technical perspective, Solana's drop to $83 has breached the 50-day EMA at $87.50, a critical support that threatens further erosion at the 200-day EMA, which is now near $78.
The Relative Strength Index (RSI) is flashing oversold territory at 28, hinting at a possible short-term rebound if oil volatility eases.
However, the moving average converging divergence (MACD) histogram remains deeply negative, confirming the bearish momentum associated with the BTC correlation, which stood at 0.92 last month.
An oil price above $110 could push SOL to $75, but a flare-up in the Hormuz tension could take the rally to the $95-$100 level.
Investors may be looking to monitor US inflation data, which may determine the crypto market's next move.
