Solana recovers some losses as geopolitical de-escalation improves risk sentiment. What to watch next?

<p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">FUNDAMENTAL OVERVIEW</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">Solana’s selloff this week was primarily driven by broader crypto market weakness amid escalating geopolitical tensions, rising oil prices and deteriorating risk sentiment. There were no clear signs of a major negative network-specific development driving the decline.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">Looking ahead, key Solana-specific catalysts include the Alpenglow consensus upgrade, which aims to reduce transaction finality to around 150 milliseconds. The upcoming Solana Breakpoint conference on the 15th of November could also bring new announcements on partnerships and ecosystem development.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">Yesterday, Solana rebounded alongside other cryptocurrencies after Trump said the US would not attack Iran before the midterm elections, easing geopolitical tensions and improving risk sentiment. The resulting pullback in oil prices, Treasury yields and the US dollar helped alleviate macroeconomic headwinds. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 101%; font-family: Aptos, sans-serif; font-size: 15px;">Looking ahead, markets will focus on Iran’s response to Washington’s proposal, which Foreign Minister Araghchi said could come within the next few days, and next week’s US CPI report. </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">For the recovery to extend, markets will likely need to see a sustained geopolitical de-escalation or a soft US CPI report. If the CPI comes in hotter than expected and we don’t get any improvement on the Middle East side, we could see further selling pressure weighing on Solana, taking it to new lows.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">SOLANA TECHNICAL ANALYSIS – DAILY TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the daily chart, we can see that <a href="https://www.tradingview.com/symbols/SOLUSD/" rel="follow">Solana</a>broke below the major upward trendline, opening the door for new lows. If the price drops to the 97.00 support, we can expect the buyers to step in there, with a defined risk below the support, to position for a rally into the 149.00 level. The sellers, on the other hand, will want to see the price breaking lower to increase the bearish bets into the next major trendline. </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">SOLANA TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the 4 hour chart, we have a minor resistance zone around the broken trendline where we can also find the 38.2% Fibonacci retracement level for confluence. If the price pulls back into the resistance, we can expect the sellers to step in, with a defined risk above the resistance, to position for a drop into the 97.00 support. The buyers, on the other hand, will want to see the price breaking higher to pile in for a rally into the 149.00 level next.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">SOLANA TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the 1 hour chart, we have a minor downward trendline defining the recent bearish momentum. The sellers will likely continue to lean on the trendline, with a defined risk above the resistance, to keep pushing into new lows. The buyers, on the other hand, will look for a break above the trendline and the resistance to pile in for a rally into new highs. </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">UPCOMING CATALYSTS</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 102%; font-size: 15px;"><a href="https://investinglive.com/EconomicCalendar" rel="follow">Today</a>we conclude the week with the University of Michigan Consumer Sentiment survey, although it’s not expected to be a market-moving release.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 101%; font-family: Aptos, sans-serif; font-size: 15px;"> </p> This article was written by Giuseppe Dellamotta at investinglive.com.