Solana Erases Friday Gains as Trump Rejects Iran Ceasefire Deal
US-Iran tensions crushed crypto risk appetite after Trump rejected a seven-day Hormuz proposal, wiping Solana's weekly gains.
Solana reversed course sharply over the weekend after President Trump rejected Iran's proposal to reopen the Strait of Hormuz within seven days, telling reporters he expected to resume bombing operations against Iran after the midterms. The rejection erased a Friday rally that had pushed the token to new highs on optimism over a potential diplomatic breakthrough, leaving traders scrambling to reassess their exposure to risk assets.
Heading into the weekend, markets had briefly turned bullish after Iran submitted the conditional proposal through diplomatic channels, sparking a broad improvement in risk sentiment that lifted Solana alongside other cryptocurrencies. Trump's Saturday rejection ended that optimism quickly, dragging the coin back and underscoring just how sensitive digital assets have become to geopolitical headlines.
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Mediators are now expected to hold separate talks with US and Iranian officials as early as Monday or Tuesday, according to Reuters. Iran's foreign minister Araghchi and Qatari intermediaries remain in the United States, with discussions centered on a revised version of the original seven-day framework. A resolution could benefit Solana by dampening aggressive Federal Reserve rate-hike expectations, while a prolonged stalemate or fresh escalation would likely sustain downward pressure on the token.
On the protocol side, Solana's major Alpenglow upgrade reached its second public test network on September 26. The upgrade replaces the existing TowerBFT architecture with a new Votor consensus mechanism, targeting a dramatic reduction in transaction finality — from roughly 12.8 seconds down to approximately 150 milliseconds. Developers are rolling the change out in phases, describing it as one of the largest protocol updates in the network's history.
Technically, analysts are watching a key trendline that defines Solana's current bullish structure. Bulls are expected to defend that level targeting a move toward $149, while a breakdown could open the door to a deeper pullback toward the $97 support zone. Continue reading at Forexlive.
