Solana remains under pressure as markets weigh US-Iran talks, Fed risks and US midterm elections

Solana sold off sharply on Thursday following the news of the Binance hack, with concerns about potential contagion across the crypto ecosystem weighing on sentiment. The increase in liquidations amplified the downside, with SOL especially vulnerable given its higher volatility and speculative positioning.Nevertheless, Solana eventually rebounded as Binance pledged to cover customer losses and concerns gradually eased. Improving sentiment around US-Iran negotiations also helped support risk appetite.Looking ahead, the macro backdrop remains challenging amid inflation risks, growth concerns, expectations of further Fed tightening and geopolitical uncertainty limiting a sustained recovery. Solana is also sensitive to changes in overall crypto market sentiment, given its higher-beta characteristics.We will likely need a breakthrough in US-Iran negotiations or more dovish Fed signals to change the current bearish trend. A surprising Republican sweep in the US midterm elections could also provide support through expectations of further fiscal expansion. A Democratic sweep, on the other hand, could lead to more downside for SOL if negotiations with Iran fail to progress or, worse, Trump decides to escalate the conflict. SOLANA TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that Solanabroke through the key 97.00 support after the Binance hack and it’s now approaching the major upward trendline. We can expect the buyers to lean on the trendline, with a defined risk below it, to position for a rally into the 148.00 level. The sellers, on the other hand, will want to see the price breaking lower to increase the bearish bets into the 75.00 handle next. SOLANA TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we have a downward trendline defining the bearish structure. If we get a pullback into the trendline, we can expect the sellers to lean on it, with a defined risk above it, to target a break below the major upward trendline. The buyers, on the other hand, will want to see the price breaking higher to pile in for a rally into the 113.00 level next. SOLANA TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we have a minor downward trendline defining the bearish momentum on this timeframe. The sellers will likely lean on the trendline, with a defined risk above it, to keep pushing into new lows. The buyers, on the other hand, will look for a break higher to extend the pullback into the major downward trendline. The red lines define the average daily rangefor today.UPCOMING CATALYSTSToday we have the US Job Openings data and the US midterm elections, although we will get the first results early tomorrow. Tomorrow, we have the US ADP and the US ISM Services PMI. On Thursday, we get the latest US Jobless Claims figures. On Friday, we conclude the week with the US NFP report and the University of Michigan Consumer sentiment survey. This article was written by Giuseppe Dellamotta at investinglive.com.