Solana Faces Bearish Pressure: Will SOL Drop Below $110?
Solana (SOL) has been on a downward trajectory, losing over 6% in the past week and trading below $150 since early March. Technical indicators suggest growing bearish momentum, raising concerns about whether the cryptocurrency could soon dip below the $110 mark.
Technical Indicators Signal Downtrend
Several key technical indicators reinforce the bearish outlook for Solana. The Ichimoku Cloud, a widely used trend-following tool, paints a concerning picture. SOL’s price is currently below both the Kijun-sen (red line) and Tenkan-sen (blue line), while the Lagging Span (green line) remains below the price candles and the cloud. The red, downward-sloping Kumo (cloud) suggests continued resistance and a challenging path for bulls.
Adding to the bearish sentiment, the thin nature of the Ichimoku Cloud suggests weak support. If selling pressure persists, SOL could struggle to find a stable floor, making further downside movement likely.
DMI Confirms Bearish Momentum
The Directional Movement Index (DMI) further confirms the bearish dominance. The Average Directional Index (ADX) has surged to 40.87, up significantly from 19.74 just days ago, indicating a strong trend. Meanwhile, the negative directional indicator (-DI) has climbed to 31.09, reinforcing seller control, while the positive directional indicator (+DI) has fallen to 8.82.
A high ADX in conjunction with a dominant -DI suggests that Solana's downtrend is not only strong but also strengthening, making a short-term recovery increasingly difficult.
Key Support and Resistance Levels
Solana recently formed a "death cross," a bearish pattern where short-term moving averages cross below long-term ones. The cryptocurrency is now testing critical support at $120. If this level fails to hold, SOL could decline to $112, with a potential dip below $110—levels not seen since February 2024.
On the upside, for any significant recovery, Solana must first reclaim the $136 resistance level. A breakout above this could pave the way for a push toward $147, a key level of resistance observed just a few days ago.