Solana (SOL) price reached a new all-time high of $264 on November 22. But since then, it has entered a correction falling almost 10% in the last 24 hours. Indicators like BBTrend and DMI show an increase in bearish momentum.
The EMA lines, while still showing a bullish structure, suggest a possible Death Cross. This pattern could intensify the correction if it occurs. As SOL approaches support levels, its recovery ability will determine whether it revisits resistance or faces further declines.
BBTrend is negative for the first time in 8 days
Solana’s BBTrend has turned negative for the first time since November 18, currently at -0.54. The Bollinger Bands Trend measures the momentum and direction of price movement relative to the Bollinger Bands. Thus, positive values indicate bullish trends and negative values suggest bearish trends.
This move into negative territory signals an increase in bearish momentum. It thus marks a contrast to its recent peak of 10.8 on November 20, just before SOL hit a new all-time high.
SOL's BBTrend. Source: TradingView
While -0.54 may not seem significant, it reflects a clear shift in market sentiment, with SOL now down nearly 10% in the last 24 hours.
If BBTrend continues to decline, it could amplify the bearish pressure, pushing SOL into a deeper downtrend. This would likely lead to further price corrections as sellers take over and the market loses confidence in its short-term recovery potential.
Downtrend is strengthening
The DMI chart shows its ADX rising from 21 to 27.24, signaling strengthening trend momentum. The Average Directional Index measures the strength of a trend. Values above 25 indicate a significant trend, either bullish or bearish.
In the case of Solana, the rising ADX reflects a buildup of momentum in its current downtrend, suggesting that selling pressure is intensifying.
SOL DMI. Source: TradingView
The DMI indicators further reinforce this bearish sentiment, with D+ at 12.7 and D- at 36.6. This large difference shows that bearish forces (D-) significantly outweigh bullish ones (D+).
An ADX above 25 and rising in a downtrend indicates that negative momentum is solidifying. If this trend continues, Solana price could see further declines as the market tilts heavily in favor of sellers.
SOL price prediction: no new all-time highs for now?
SOL’s EMA lines present a crucial scenario, with the short-term lines still positioned above the long-term ones, indicating a persistent bullish setup.
However, the shorter-term EMA lines are trending down and approaching a possible crossover with the longer-term lines, signaling the possible formation of a Death Cross. This pattern usually indicates a shift in momentum from bullish to bearish, raising caution among traders.
SOL Price Analysis. Source: TradingView
If a Death Cross forms, SOL’s correction could intensify, leading the price to test its closest support at $204. If this level fails to hold, the price could decline further, targeting $194.
On the other hand, if Solana regains bullish momentum and reverses the trend, it could challenge the resistance at $248. Breaking above this level could propel SOL price to surpass $264, reaching a new all-time high and reinforcing the bullish sentiment in the market.
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