Solana drops as Middle East tensions outweigh Alpenglow upgrade and macro worries

Solana faced fresh selling pressure as rising tensions in the Middle East dampened risk appetite. Reports that the US is preparing for possible strikes on Iran intensified concerns over a new direct confrontation.

Higher oil prices, increasing economic worries and a hawkish Fed combine to form a difficult environment for cryptocurrencies. Should the conflict intensify, SOL may stay exposed to a broader retreat from risk assets.

The Alpenglow upgrade has been completed on Solana's mainnet, going live on October 21. It replaces TowerBFT and aims for transaction finality of roughly 150 milliseconds, compared with about 12.8 seconds previously.

Looking forward, the US Flash PMIs due tomorrow may cause more volatility due to persistent growth worries. Data coming in below expectations could heighten growth fears, hurt risk sentiment and spark another SOL selloff. Conversely, stronger data might alleviate concerns and produce a temporary relief rally, but that would not alter the broader outlook since it would only underscore the case for additional Fed tightening, capping any rebound.

Solana technical analysis on the daily timeframe shows renewed pressure due to the Middle East tensions. Key support is near the 97.00 level. If that zone is reached, buyers are expected to step in with risk below support, targeting a rise to 148.00. Sellers, meanwhile, want a break lower to expand bearish bets toward the major uptrend line.

In the 4-hour timeframe, minor support lies near 103.50. Buyers on dips could enter with risk below that level, aiming for the 113.00 resistance. Sellers are looking for a breakdown to push the drop to 97.00.

On the 1-hour timeframe, a minor downward trendline outlines the current bearish momentum. Sellers will likely lean on it with risk above, aiming for 97.00. Buyers await a break higher to rally to 113.00.

Upcoming catalysts include the latest US Jobless Claims figures today and the US Flash PMIs tomorrow, which conclude the week.