Solana price dropped 5% to near $83 on Friday.
The altcoin fell as Bitcoin and Ethereum declined to $66,500 and below $1,990, respectively.
Risk assets sank as Brent oil surged to $110 amid Iran war concerns.
Solana (SOL) price has slipped more than 5% as altcoins mirror declines in Bitcoin (BTC).
The downturn coincided with a dramatic surge in oil prices to $110 per barrel, fueled by geopolitical tensions in the Middle East, with President Donald Trump’s announcement of a deadline extension for Iran seemingly not assuaging sellers.
Iran has largely dismissed US claims that talks have shown progress.
Solana drops to $83 amid crypto dip on oil surge
Solana’s price plunged to a low of $83 during Friday’s session, marking a decline of over 5% within 24 hours.
This aligned with the broader crypto market’s vulnerability to macroeconomic shocks, with Bitcoin sliding to below $66,500.
BTC’s drop below $67k marks the first time bulls have seen these levels since March 9.
Losses triggered massive long liquidations across top altcoins.
The sharp decline for BTC came as oil prices topped $110 despite US President Donald Trump’s announcement of a 10-day extension to the deadline for Iran to open the Strait of Hormuz.
Trump had paused the move to strike Iran’s energy infrastructure by 5 days, but even then, the additional five days appear to have done little to soothe supply concerns.
US stocks faltered as the international benchmark Brent crude futures rose 2.7% to $110.94 a barrel.
Crude gains reversed earlier losses following the early March spike, which also saw BTC prices sink to support.
As risk appetite got a fresh bump, Solana’s trading volume spiked 13% to over $4.1 billion.
The surge in intraday volume across major exchanges signals panic, as the unwinding of leveraged positions has led to significant losses for long positions.
Solana price outlook
From a technical standpoint, Solana’s descent to $83 breached the 50-day exponential moving average (EMA) at $87.50, a critical support that now risks further erosion toward the 200-day EMA near $78.
The relative strength index (RSI) flashed oversold territory at 28, hinting at a potential short-term rebound if oil volatility eases.
However, the moving average convergence divergence (MACD) histogram remains deeply negative, confirming bearish momentum tied to the BTC correlation, which stands at 0.92 over the past month.
A sustained oil price above $110 could push SOL toward $75, but a de-escalation in Hormuz tensions might spark a relief rally back to the $95-$100 level.
Investors might also be looking to monitor US inflation data, with this likely to dictate the crypto market’s next move.
