Solana briefly touches below 21-period SMA

Solana bulls are struggling in keeping the prices elevated, with the token briefly touching below psychologically important 90$ level on Thursday.

Although the current price is still trading above both 21 & 50 – period SMAs (93.864 & 93.235 respectively), a move below them could drag the price further towards the next potential support levels at $85 and $80.

The relative strength index’s (RSI) current positioning (~51.85) underscores the current state of uncertainty on the markets.

The decline coincides with its restructuring efforts to decentralize its blockchain. However, some view these changes as symbolic rather than impactful improvements to the existing infrastructure.

Other forces that may also affect the 4th largest altcoin in the foreseeable future revolve around the US interest rate policy.

Following the Fed’s hawkish commentary on Wednesday (31.01.2024) the markets have lowered their expectation of a march rate cut down to 35.5% (1 month earlier – 73.4%).

Higher-for-longer interest rates may continue to discourage potential investors from entering riskier assets such as cryptocurrencies.

However, if the newly launched BTC spot ETFs continue to attract a significant amount of funds, this could also potentially translate into support for altcoins.