The Solana price struggled in September as did most cryptocurrencies. The SOL token initially jumped by more than 110% in September and then erased some of those gains. It dropped from the monthly high of $216 to a low of $116. It is now trading at $136, which is slightly above the lowest level on September 22.
There are several reasons why the Solana price erased some of the gains it made in September. First, the decline was in sync with the performance of other cryptocurrencies and assets in general. Indeed, in September, the total market capitalization of all digital currencies tracked by CoinMarketCap declined from more than $2.3 trillion to more than $1.8 trillion.
Second, the Solana price declined because of the overall weakness in other assets. Stocks, as measured by the leading American indices like the Dow Jones and S&P 500 had their worst month in 9 months.
Third, there were concerns about the new regulatory space in China. The Chinese government barred offshore companies like Huobi to stop offering cryptocurrency products to Chinese citizens. At the same time, there were worries about government shutdown and default in the US.
So, what is the forecast for the Solana price in October? From a fundamental aspect, there is a possibility that the price will rebound in October. Historically, stocks tend to do better in October after lagging in September. There is a close correlation between cryptocurrencies and stocks.
The four-hour chart shows that the Solana price has been in a tight range in the past few weeks. The price has made a symmetrical triangle that is shown in purple. It is also slightly below the 25-period and 50-period exponential moving averages (EMA).
Therefore, with the price nearing the confluence zone, there is a possibility that the price will bounce back higher in October. If this happens, the next key resistance level to watch will be at $160, which is about 17% above the current level. On the flip side, a move below the key support at $125 will invalidate this prediction.