Solana's Ups and Downs: Can It Bounce Back?

Solana's price has been feeling the heat lately, dropping below $200 and hovering just under its 100-day moving average. It's been a rough ride since it hit a high of around $255 a few weeks ago. Traders are keeping an eye on key Fibonacci levels, with $174 and $155 being major points of interest for potential rebounds. If things keep going south, $130 could be the next big buying opportunity. Looking at the bigger picture, Solana is stuck in a short-term downward trend, but it did manage to bounce back a bit recently. The 50% Fibonacci level seems to be a strong support point, which could help trigger the next rebound. This suggests that even though things look bearish in the short term, there's still some upward momentum that could work in favor of swing traders. But it's not just about the charts. Solana is facing some big external challenges too. The U. S. government shutdown and talk of new tariffs have spooked investors, causing a sell-off across the crypto market. Even Bitcoin took a hit, dropping to its lowest point since July. The Federal Reserve's interest rate cuts might provide some relief, but the overall economic uncertainty is still a worry. On the bright side, Solana's ecosystem is growing fast. It's become a top choice for decentralized apps because of its speed, scalability, and low fees. Some of the biggest DEXes, like Jupiter and Raydium, run on Solana. In fact, Solana's DEXes are now rivaling Ethereum in transaction volume. Plus, Solana's co-founder is working on a new perpetual DEX, which could attract even more users. Big companies are also taking notice. Some are following MicroStrategy's lead and adding Solana to their portfolios as a hedge. SOL Strategies and Forward Industries have both made significant investments in SOL, showing confidence in its long-term potential. Despite the short-term struggles, Solana's strong fundamentals could help it weather the storm. With DEX volume on the rise and big players betting on its future, there's reason to believe that Solana can overcome current market pressures. The 50% Fibonacci level has already shown some resilience, and if things get worse, the 61. 8% level at around $155 could become a major demand zone.