Solana Drops 6% In A Week, Bearish Trend Strengthens
2min read Solana (SOL) has experienced a significant decline, dropping over 6% in the past week and trading below $150 since March 6. The current trend indicates clear bearish signals across multiple technical indicators. The Ichimoku Cloud chart for Solana shows a bearish structure, with the price action trading below both the Kijun-sen and Tenkan-sen lines. The Lagging Span is also positioned below the price candles and the cloud, reinforcing the negative outlook. The Kumo ahead is red and descending, suggesting strong resistance in the near term. The thin nature of the current cloud indicates weak support, making the price vulnerable to further downside if bearish momentum continues. For a reversal, Solana would need to break above the Kijun-sen and push decisively toward the cloud, but for now, the trend remains tilted to the downside.
Solana’s Directional Movement Index (DMI) chart shows a sharp rise in the Average Directional Index (ADX), now at 40.87, up from 19.74 just three days ago. The ADX measures the strength of a trend, with values above 25 indicating a strong trend and values above 40 signaling a very strong one. This surge confirms that the current downtrend in sol is gaining momentum. At the same time, the +DI has dropped from 17.32 to 8.82, while the -DI has climbed to 31.09, where it has held steady for the past two days. This setup suggests that sellers are firmly in control, and the downtrend is strong and strengthening. As long as the -DI remains dominant and the ADX stays elevated, SOL is likely to remain under pressure in the short term.
Solana recently formed a death cross, a bearish signal where short-term moving averages cross below long-term ones. It is now approaching key support at $120. If that level breaks, the Solana price could drop to $112, and possibly below $110 for the first time since February 2024. If bulls step in and buying pressure returns, SOL could rebound toward resistance at $136. A breakout above that level may lead to a push toward $147, which acted as strong resistance just five days ago.
Ask Aime: What factors are driving Solana's recent decline, and how might this impact the broader market?
In summary, the technical indicators for Solana (SOL) paint a bearish picture, with multiple signals suggesting growing downside pressure. The Ichimoku Cloud, DMI, and death cross formation all point to a strong downtrend, with key support levels at $120 and $110 in focus. The next few days could be critical for Solana's price direction, as a break below these levels could lead to further declines. However, if bulls manage to push the price above the Kijun-sen and toward the cloud, a reversal could be possible. Investors should closely monitor these levels and the overall market sentiment to make informed decisions.
