Solana faces continued downside risk as negative macro backdrop and US CPI report near

Technology stocks extended their selloff on Thursday, sparking a broad risk-off stance that hit Solana particularly hard. Traders in digital assets began re-evaluating how a Democratic election sweep might reshape the US economic landscape, driving sentiment lower.

Markets are pricing in a Democratic-controlled Congress as more prone to fiscal discipline and stricter oversight, which would likely curb spending on AI infrastructure. Since a large chunk of recent US expansion has been tied to AI investment, a pullback in that cycle could carry weighty consequences for the broad economy.

The election results also leave President Trump free to pursue tariffs and maintain the military campaign against Iran. These factors inject multiple downside threats to the US growth picture, where the sole potential alleviation is a conclusion to the Iran conflict.

The US CPI reading, due tomorrow, serves as the next big macro event. The figures may shape bets on the December FOMC gathering, where another rate increase is already heavily discounted by the markets. A strong inflation print could produce a hawkish repricing, hitting Solana once more. Weaker data, conversely, might deliver a temporary reprieve without altering the broader downward trajectory.

SOLANA TECHNICAL ANALYSIS – DAILY TIMEFRAME

Solana has slipped beneath the main upward trendline, opening a path toward the 74.00 level. Sellers are expected to press on the descending trendline, with calculated risk above it, to pursue fresh lows. Buyers, meanwhile, are looking for a push above the trendline to set up a move toward the 149.00 zone.

SOLANA TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME

A minor descending trendline is defining the 4-hour bearish momentum. Sellers are expected to hold the line, with defined risk above it, to push toward lower levels. Buyers need a break higher to gather for a rally, aiming first at the major descending trendline.

SOLANA TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME

The setup gives sellers a better risk-to-reward profile around the trendline on the 1-hour chart. Buyers will need a breakout to push toward new highs.

UPCOMING CATALYSTS

The US CPI report is due tomorrow. Weekly Jobless Claims figures follow on Thursday, and the week wraps with US PPI data on Friday.