Solana Price Plunges as Hawkish Fed Outlook Exacerbates Risk-Off Sentiment

Solana's price has been on a downward trend since failing to reclaim the key $75, $76 resistance zone, and a hawkish Federal Reserve outlook is exacerbating risk-off sentiment.

The cryptocurrency fell more than 6% from its June 15 high, with major liquidation clusters between $74 and $76 creating significant liquidity risks above current prices. Support levels are concentrated near $65, $66, but a break below $70 could expose June lows around $62, with the $60 area emerging as the next major downside target.

The decline followed a sharp recovery from early June lows around $62, where Solana rallied more than 20% alongside a broader rebound across the crypto market. The selling accelerated after the Federal Reserve kept interest rates unchanged at 3.50%, 3.75%, while warning that inflation risks remain elevated.

Momentum indicators remain mixed, with the Relative Strength Index recovering from oversold territory but remaining below the neutral 50 mark. Meanwhile, the Aroon indicator continues to favor the bears, with the Aroon Down reading holding significantly above Aroon Up.