Solana (SOL) price is up 16.96% in the last seven days and is now very close to hitting a new all-time high. The recent surge has put SOL below 3% of its previous ATH, indicating a strong bullish sentiment in the market.
However, indicators such as BBTrend and ADX suggest that the current uptrend is losing some momentum, raising caution about a possible consolidation or pullback.
SOL BB trend remains positive
Solana currently has a BBTrend of 9.56, indicating a sustained positive trend since November 18. While still in a bullish zone, the value has declined from its monthly high of 18.64 on November 10, indicating a decline in the trend’s strength.
This suggests that while SOL is still in an uptrend, the momentum behind recent price action may be weak.
BBTrend measures the strength and direction of price trends using Bollinger Bands, with positive signals indicating an uptrend and negative values indicating a downtrend.
At 9.56, SOL’s BBTrend reflects a moderately bullish sentiment, albeit much weaker than at the start of the month. This could mean that the current uptrend is stabilizing, leaving SOL vulnerable to consolidation or a potential reversal if buying pressure decreases further.
Solana's current uptrend is not as strong as it used to be.
The DMI chart for Solana (SOL) shows that the ADX is at 20.71, indicating a weaker trend than at the beginning of the month when it was above 50.
ADX measures the strength of a trend, regardless of its direction, with values above 25 indicating a strong trend and below 20 indicating a weak or non-existent trend. The current value indicates that the SOL trend has weakened significantly, reflecting a decrease in momentum after its previous high.
With the Positive Trend Indicator (D+) at 27.5 and the Negative Trend Indicator (D-) at 13.8, the bullish pressure continues to outweigh the bearish activity.
However, the weak ADX indicator indicates that this bullish momentum lacks the strength to sustain a significant upward move. For Solana price to regain a strong uptrend, the ADX must rise above 25.
SOL Price Prediction: Will It Hit New Highs Soon?
Solana price is currently less than 3% from its all-time high (ATH). If Solana maintains its current uptrend, it is in a position to rally and possibly reach a new ATH at $260.
A break of this level could pave the way for further gains, with the price targeting perhaps $265 or even $270.
However, as shown by BBTrend and ADX, the trend strength seems to be weakening, leaving room for a possible reversal. If a downtrend emerges, SOL price could test the support levels at $204 and $194.
If these supports fail to hold, the price could drop further to $154, indicating a major correction from its current levels.