Solana (SOL) price has gained 12% over the past six days, riding strong bullish momentum that has seen it break through several resistance areas. The rally has been fueled by technical strength, including a bullish EMA and supportive BBTrend values.
However, with gains quickly accumulating, traders are now assessing whether SOL can sustain this bullish momentum. The ability to test and hold key resistance levels will be crucial in shaping the next price action.
d indicates that SOL speculators are strong.
SOL’s BBTrend is currently positive, around 8.08, indicating strong bullish momentum for Solana. This means that the price is trading above the middle band of the Bollinger Band, showing a positive market sentiment.
A positive BBTrend often indicates that the price trend is well supported, and the asset may continue its upward trajectory. However, BBTrend should be complemented with other indicators to confirm the overall strength and sustainability of the trend.
The BBTrend indicator measures the strength and direction of a trend using Bollinger Bands, which track volatility. While the current BBTrend value remains positive, it has declined from 9.01 over the past few days, suggesting that Solana’s bullish momentum may be diminishing.
This decline could mean that the current trend is weakening, which means that SOL price could face increasing resistance and possibly a shift towards a more neutral or sideways movement.
Solana's current uptrend may be losing momentum
SOL's DMI chart reveals that the strength of the current uptrend is at 34, as indicated by the yellow line, which represents the Average Directional Index (ADX). ADX is a key component of the Directional Movement Index (DMI) and is used to measure the strength of a trend, regardless of its direction.
The ADX itself is a measure that helps traders understand the strength of current price action. A reading above 20 generally indicates a strong trend, and with an ADX of 34, Solana is currently in a strong uptrend, indicating that there is significant momentum behind the recent price action.
In the case of Solana, a reading of 34 indicates that the uptrend is strong, but traders need to watch whether the ADX continues to rise or starts to flatten, as this can hint at changes in the strength of the trend.
Additionally, the DMI chart reveals that the positive directional indicator (D+) stands at 22.3, while the negative directional indicator (D-) is at 14.2. A higher D+ indicates that buyers are still in control of the market. However, just two days ago, the D+ was at 36.7 and the D- was at 9.15, indicating that the gap between them is narrowing, which may indicate a weakening of the buyers’ momentum.
A narrowing gap indicates weakening bullish momentum and increasing selling pressure. If this trend continues, it could signal a shift towards a more hesitant market, where bulls are losing control. This could lead to greater price volatility or consolidation.
SOL Price Prediction: 12% Correction or 27.8% Upside?
SOL’s EMA lines remain positive, with the short-term exponential moving averages (EMAs) positioned above the long-term EMAs. This arrangement suggests that the price trend is currently in an upward phase, as recent price movements are above the longer-term EMA.
However, the short-term EMAs have started to trend downwards, indicating a possible loss of momentum. If these short-term lines cross below the long-term EMAs, it could be a bearish cross, signaling the start of a downtrend. Traders typically view this “death cross” as an early warning that the prevailing uptrend is weakening.
Looking at the current situation, SOL could test the support levels at $144 and $141. If the selling pressure continues, the price could even drop to $133, which is a 12% retracement from the current levels. These support areas could play a crucial role in stabilizing the price and providing a platform for a potential recovery.
On the other hand, if the bullish momentum returns and the uptrend gains strength, Sol could return to the $161 level, and if it manages to break through this resistance, the next target could be $193, which would mean a potential price gain of around 27.8%. This scenario would confirm the continuation of the uptrend, with the possibility of further upside if buyers regain control.