Solana price prepares for possible crash below $100 amid investigation rumors

Solana price has seen a sharp decline over the past month in line with the broader market correction, adding to concerns as rumors recently surfaced about a possible investigation into the popular blockchain platform.

Is a regulatory storm brewing?

In a Social media post On X (formerly Twitter), market expert Crypto Bitlord, who has a sizable following of over 300,000 people, hinted at an alleged investigation into Solana. The post read:

We’re hearing rumors that SOL is under investigation and a major case is about to break. This has been brewing for weeks and couldn’t come at a worse time.

Although no specific details have been disclosed about the jurisdiction or agency conducting the alleged investigation into Solana, the United States is at the forefront of a continued crackdown on the cryptocurrency industry since the collapse of the crypto exchange FTX in late 2022.

The fallout from the FTX incident led to a series of lawsuits and charges against various industry executives, with notable figures such as former Binance CEO Changpeng Zhao (CZ) and Coinbase coming under legal scrutiny.

A similar scenario can be drawn with XRP and Ripple, as they are involved in a complex legal dispute over the sale of the digital asset.

For Crypto Bitlord, who works on projects such as Shiba Inu (SHIB), Floki Inu (FLOKI) and Pepe Coin (PEPE), the potential impact on Solana price is significant. In response to skeptical comments, Bitlord warned: “Don’t cry when SOL goes back to $3.”

However, until further news emerges regarding the alleged investigation, these statements remain speculation. Solana’s founders have not made any official statements regarding these rumors.

Solana Price Analysis

Solana price has suffered significant losses in different time frames, with declines of over 9%, 18%, and 22% in the last seven, fourteen, and thirty days, respectively. However, despite the downtrend, trading volume for SOL has remained robust, surpassing $2.8 billion in the last 24 hours alone, according to CoinGecko. Data.

Digital asset investment firm CoinShares reported Notable inflows into various altcoins following the recent price weakness, with Solana recording inflows of over $2.7 million. This suggests that some investors see potential value in SOL despite the price drop and are strategically entering the market.

Nevertheless, Solana price is facing a critical test as it approaches crucial support levels. Currently, SOL is trading just above a four-month support level at $127, which marked the uptrend when Solana price hit a yearly high of $210 in mid-March.

If Selling pressure intensifies and this support is broken, then SOL could drop to $117, which is the token’s next significant medium-term support level.

Additional support walls for SOL in case of a sustained bearish move lie at the $109 and $102 levels. These levels should be closely watched by bullish investors who want to prevent Solana from falling below $100.

Featured image of DALL-E, chart from TradingView.com