Solana is Going to Zero After SEC Lawsuit Deems SOL a Security and Investors are Moving to Ecoterra as the Platform Raises $4.9 Million – What Does it Do?
In a nasty surprise for Solana holders, SOL has been named as an unregistered security in the latest SEC enforcement action against Binance - now facing an uncertain future will Solana sink-or-swim?
As the aftermath of the latest 'regulation by enforcement' moves sets in, crypto markets are reeling as multiple top-10 projects have been named as unregistered securities by the SEC.
Uniquely, all of the major projects mentioned have been leading Proof-of-Stake cryptocurrencies.
Amid the worst hit is Solana, which endured a shocking -18.32% dump in the aftermath of the news - ruining poised technical structure.
Indeed, the seismic move down has smashed through multiple technical supports including the MA20, MA200, and lower trendline in a dramatic display.
With Solana now trading at $18.95 (a 24 hour gain of +1.66%) - price action faces a sink-or-swim moment, with a bounce likely in this support area.
The loss of moving average support could prove crushing for SOL performance, ending almost two months of steadfast support from the MA200.
Some silver lining emerges from Solana's oscillators which showcase resilience.
The RSI sits at 40, a technical oversold signal that suggests a bounce could be due.
And the MACD provides little cause for concern, reflecting only minor bearish divergence at -0.12.
As fundamental headwinds turn turbulent, price action could become highly volatile - yet despite the negative outlook, on the short-time frame there could be a degree of upside.
A bounce from this level would likely face an upside target back above the critical support of the MA200 at $19.60 (+3.65%).
However, downside risk from here remains a threat, with a lower support level likely to form at $16.75 (-11.42%).
This leaves Solana facing a
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