invezz.com 
Solana ($SOL) plunged to intraday lows of $80 on Thursday as a sudden deterioration in risk sentiment roiled cryptocurrency markets.
The token has slightly bounced off the intraday lows as investors digest the US-Iran situation.
$SOL could thus eye a swift rebound to recent highs.
However, technical indicators and broader risk assets outlook suggest bulls may yet be vulnerable to a deeper pullback.
Solana tests $80 support amid crypto sell-off
Solana price fell as the broader crypto market sold off sharply early Thursday.
This is after reports that Iran’s Revolutionary Guards struck a US airbase following an alleged early-morning US attack near Bandar Abbas airport.
Market reaction to the strikes sent oil prices higher and increased fears of disruption around the Strait of Hormuz, amplifying risk aversion across financial markets.
The development pushed Bitcoin briefly down to lows near $73,000, mirroring weakness in equity futures.
Top altcoins tumbled in tandem, with Ethereum slipping below $2,000.
Among major altcoins, XRP gave back gains to trade below $1.30, while Solana briefly touched the $80 level.
Liquidity conditions around the sell-off were thin, according to on-chain and exchange metrics, which exacerbated intraday volatility for $SOL and other tokens.
Solana price outlook
Technical and derivatives data point to a cautious near-term outlook for Solana.
According to Coinglass, $SOL perpetual futures funding rates have flipped negative and were holding around -0.0088%.
This suggests short sellers remain dominant and that traders are positioning for further downside or hedging against additional volatility.
On-chain liquidations during the session further highlight the potential for further downside pressure.
In terms of technical setup, price action shows Solana trading below key short- and medium-term moving averages.
Momentum indicators add to the cautionary tone.
The Relative Strength Index (RSI) is approaching oversold territory, reflecting the intensity of recent selling while suggesting that any rebound could remain fragile if pressure persists.
The Moving Average Convergence Divergence (MACD) remains below its signal line in negative territory, indicating that bearish momentum is still intact.
As the daily chart shows, immediate resistance lies at the 50-day and 100-day simple moving averages (SMAs).
These levels have acted as barriers to recent upside attempts.
If buyers regain momentum, the 200-day exponential moving average (EMA) could emerge as the next major resistance level.
On the downside, support could be around $78, which, if breached, would open the path toward a more meaningful floor near $70.
What could change the narrative
A lasting ceasefire and an end to hostilities between the US and Iran could help ease oil prices.
A broader market recovery could help Bitcoin rebound toward recent highs, relieving immediate pressure on Solana and allowing bulls to retest the 50-day and 100-day SMAs.
Conversely, further geopolitical escalation or a continued flight from risk assets would likely see $SOL test lower support levels.
