Solana (SOL/USD via TradingView) recovered part of this week's losses after remarks from US President Donald Trump eased Middle East tensions and lifted risk sentiment across cryptocurrency markets, though traders remain focused on Iran's response to Washington's proposal and next week's US inflation data.

Market Overview

Solana's selloff this week was driven primarily by broad weakness across the cryptocurrency market, as escalating geopolitical tensions, rising oil prices and deteriorating risk sentiment weighed on digital assets. There were no clear signs of a major negative network-specific development behind the decline. The move highlights how major tokens such as SOL, one of the largest cryptocurrencies by market value, tend to trade in step with the broader digital-asset market, leaving them exposed to macro-driven swings even when network fundamentals show no deterioration.

Several Solana-specific catalysts remain ahead, giving the ecosystem potential news flow distinct from the macro backdrop. The Alpenglow consensus upgrade aims to reduce transaction finality to around 150 milliseconds, while the Solana Breakpoint conference, scheduled for November 15, could bring new announcements on partnerships and ecosystem development.

Yesterday, Solana rebounded alongside other cryptocurrencies after Trump said the United States would not attack Iran before the midterm elections. The comments eased geopolitical tensions and improved risk sentiment, and the resulting pullback in oil prices, Treasury yields and the US dollar helped alleviate macroeconomic headwinds. The rebound illustrates how quickly risk sentiment in cryptocurrency markets can pivot on geopolitical headlines.

On the geopolitical front, Foreign Minister Araghchi said Iran's response to Washington's proposal could come within the next few days. Markets will also watch next week's US Consumer Price Index (CPI) report, one of the most closely followed US inflation gauges and a regular input into expectations for Federal Reserve interest-rate policy.

For the recovery to extend, markets will likely need to see sustained geopolitical de-escalation or a soft US CPI print. If inflation comes in hotter than expected and the Middle East situation shows no improvement, renewed selling pressure could weigh on Solana and take it to new lows.

Technical Outlook — Daily Timeframe

On the daily chart, Solana has broken below its major upward trendline, opening the door to new lows. According to the analysis, if the price drops to the 97.00 support, buyers could step in there with defined risk below the support to position for a rally into the 149.00 level. Sellers, meanwhile, will want to see the price break lower to build bearish bets toward the next major trendline.

Technical Outlook — 4-Hour Timeframe

On the 4-hour chart, a minor resistance zone sits around the broken trendline, where the 38.2% Fibonacci retracement level provides confluence. A pullback into this zone could draw sellers, with defined risk above the resistance, targeting a drop into the 97.00 support. Buyers, on the other hand, will want to see the price break higher to pile in for a rally into the 149.00 level.

Technical Outlook — 1-Hour Timeframe

On the 1-hour chart, a minor downward trendline is defining recent bearish momentum. Sellers will likely continue to lean on the trendline, with defined risk above the resistance, to keep pushing the price into new lows. Buyers will look for a break above the trendline and the resistance to fuel a rally into new highs.

What to Watch Next

The week concludes today with the University of Michigan Consumer Sentiment survey, although the release is not expected to be a market-moving event, according to the InvestingLive Economic Calendar.

Source: InvestingLive