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Solana (SOL) Risks Falling to $120 as Bearish Signals Grow
Solana (SOL) is under pressure after failing to sustain its recent rally and is now trading lower, following Bitcoin and Ethereum’s recent patterns. Despite briefly surging earlier this week, SOL has dropped over 3% in the past 24 hours.
Technical indicators are showing growing bearish signals, with sellers regaining control in the short term. Traders are watching key support and resistance levels as Solana struggles to regain its bullish momentum.
SOL Ichimoku Cloud Shows The Setup Is Turning Bearish
Solana is currently trading below the Ichimoku Cloud, indicating a bearish trend in the short term. The price has fallen under both the Tenkan-sen (blue line) and Kijun-sen (red line), suggesting downward momentum is still in play.
The cloud ahead is thin and flat, signaling weak trend strength and the potential for continued sideways or bearish price action unless buyers step in soon.
Additionally, the Lagging Span (green line) is positioned below both the price and the cloud, reinforcing the bearish sentiment. The price is hovering near the lower boundary of the cloud, which could act as immediate resistance if Solana attempts a rebound.
If sellers maintain control, SOL could face further downside pressure, while a breakback above the cloud would be needed to hint at a possible trend reversal.
Solana DMI Shows Sellers Regain Control After The Brief Surge
Solana’s DMI chart shows that the ADX has dropped to 15.87 from 22.18 yesterday, indicating a weakening trend.
The Average Directional Index (ADX) measures the strength of a trend, with values above 25 suggesting a strong trend and values below 20 pointing to weak or consolidating price action.
At the same time, the +DI has fallen sharply to 16.85 from 28.62, showing a loss of bullish momentum. Meanwhile, the -DI has risen to 22.53 from 14.88, suggesting growing bearish pressure.
With the -DI now above the +DI and the ADX below 20, Solana could remain under selling pressure or enter a range-bound phase as bears take short-term control.
Solana Could Fall Until $112 If Bearish Momentum Intensifies
Solana followed a similar pattern to Bitcoin and Ethereum, briefly rallying between March 19 and 20 before reversing and dropping over 3% in the last 24 hours.
The price is now approaching key support around $120, and a break below this level could trigger a deeper decline toward $112 or even below $110.
Despite the recent corrections, according to Charles Wayn, founder of decentralized Web3 super-app Galxe, told BeInCrypto that Solana’s success shows blockchains need niches:
“As Solana celebrates the arrival of its first futures ETF, it has firmly disproved those who doubted its survival since its launch five years ago. While not becoming the “Ethereum killer” it was touted to be, it has – among other things – emerged as the blockchain for meme coin trading. With $3 billion in daily meme coin trading volume at the peak of the frenzy, Solana’s pump.fun is the largest and highest-grossing meme coin launchpad in the market. Solana has truly found its niche in the crypto market over the last five years – and now it’s time for other blockchains to find theirs.”
He also points out Solana’s success in the meme coins sector:
“Solana’s success in the meme coin sector demonstrates the need for multiple Layer1 blockchains in the crypto ecosystem. Indeed, many competitors have come into the space to challenge Solana as the retail chain, but its dominance in meme coins has kept it popular with new and mainstream users. There will always be faster, cheaper, more composable and more UX-friendly chains – however, specialized Layer1s that focus on a specific aspect of the industry are going to become more prevalent. Crucially, discovering a niche will allow chains to remain competitive and attract developers and users,” says Wayn.
If Solana price manages to regain bullish momentum, it could first target resistances at $131 and $136. It recently tried and failed twice to break that resistance.
A stronger recovery could lead to a rally toward $152.9 and potentially $179.85, which would mark its highest price since early March.
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