Solana (SOL) dropped 13% this week, trading at $173.52, following the fallout from Argentine President Javier Milei’s involvement in the $LIBRA meme coin scandal. The controversy, known as “Cryptogate” in Argentina, has triggered a corruption investigation into Milei, who promoted $LIBRA as a tool for economic growth.
The coin’s value briefly surged to a $4 billion market cap before collapsing as early holders cashed out, leading to accusations of a “rug pull.”
Milei deleted his promotional post after the price crash and distanced himself from the project. However, he now faces legal scrutiny for potential fraud, bribery, and abuse of authority.
This scandal has raised questions about the regulation and stability of meme coins, impacting investor sentiment across the crypto market, including Solana.
Key Details of the $LIBRA Scandal:
- Market Manipulation: $LIBRA’s price surged before collapsing, suggesting market manipulation.
- Legal Implications: Milei faces allegations of fraud, bribery, and abuse of authority.
- Investor Sentiment: The scandal has eroded investor confidence in meme coins and the broader crypto market.
Solana (SOL) Faces Bearish Momentum Amid Market Uncertainty
Solana’s bearish trend has intensified as it struggles to break above the descending trendline, indicating continued selling pressure. The 50-Day Exponential Moving Average (EMA) at $179.15 is acting as strong resistance, preventing a recovery.
SOL Key Resistance Levels:
- Immediate Resistance: $180.48 – A breakout above this level could trigger buying interest.
- Next Resistance: $191.39 and $206.01 – Clearing these levels may shift sentiment to bullish.
SOL Key Support Levels:
- Immediate Support: $161.32 – A break below this level could accelerate the bearish trend.
- Next Support: $149.24 and $136.25 – These are critical support zones that could prevent a deeper decline.
The descending trendline and the 50 EMA reinforce the bearish outlook, indicating that Solana may continue to struggle unless it breaks above $180.48.
Impact on Meme Coins and Broader Crypto Market
The $LIBRA scandal has affected investor sentiment toward meme coins and the broader cryptocurrency market. Meme coins, known for their speculative nature, have been criticized for enriching insiders at the expense of retail investors. This scandal has amplified skepticism and led to increased caution among traders.
Regulatory Concerns and Future Implications:
- Increased Scrutiny: The scandal has raised questions about regulatory oversight and transparency in the global crypto market.
- Potential Regulation: Analysts warn that the controversy could lead to stricter regulations for meme coins and speculative digital assets.
- Market Volatility: Despite negative sentiment, meme coins are likely to persist due to their potential for high returns.
SOL Outlook and Conclusion
Solana remains bearish below $180.48 and the 50 EMA at $179.15. If prices fail to break above these levels, the bearish trend is likely to continue, targeting support at $161.32. However, a decisive breakout above $180.48 could reverse the bearish trend, pushing Solana toward $191.39.
Key Insights:
- Bearish Momentum Below $180.48: Solana is bearish below $180.48, with the 50 EMA acting as strong resistance.
- Key Support Levels: Immediate support at $161.32, with the next support at $149.24.
- Breakout Potential: A breakout above $180.48 could push Solana toward $191.39, reversing the bearish trend.
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The post SOL Price Dropped 13% This Week Amid Milei Meme Coin Rugpull: What’s Next? appeared first on Cryptonews.
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