Solana (SOL) reached an all-time high of 264 USD on November 22 but has since entered a correction phase, dropping nearly 10% in the last 24 hours. Indicators like BBTrend and DMI show increasing downward momentum.
The EMA lines, while still showing a bullish structure, hint at a potential death cross, which could intensify the correction if it forms. As SOL approaches key support levels, its ability to recover momentum will determine whether it revisits resistance at 248 USD or faces further decline towards 194 USD.
SOL BBTrend negative for the first time in 8 days
Solana BBTrend has turned negative for the first time since November 18, currently at -0.54. BBTrend, or Bollinger Bands Trend, measures momentum and price movement direction relative to the Bollinger Bands, with positive values indicating an upward trend and negative values indicating a downward trend.
This shift into negative territory signals increasing bearish momentum, marking a stark contrast to the recent peak of 10.8 on November 20, just before SOL reached a new all-time high.
SOL BBTrend. Source: TradingView
Although -0.54 may seem insignificant, it reflects a clear change in market sentiment, with SOL currently down nearly 10% in the past 24 hours.
If BBTrend continues to decline, it could amplify bearish pressure, pushing SOL into a deeper downtrend. This is likely to lead to further price corrections as sellers dominate and the market loses confidence in near-term recovery potential.
The downtrend of Solana is becoming stronger
The SOL DMI chart shows its ADX rising to 27.24 from 21 yesterday, signaling increasing trend strength. ADX, or Average Directional Index, measures the strength of a trend, with values above 25 indicating a significant trend, whether up or down.
In the case of Solana, the rising ADX reflects increasing momentum in its current downtrend, indicating that selling pressure is intensifying.
SOL DMI. Source: TradingView
DMI indicators continue to reinforce this bearish sentiment, with D+ at 12.7 and D- at 36.6. This large gap indicates that the bearish force (D-) is significantly greater than the bullish force (D+).
ADX above 25 and increasing in a downtrend indicates that negative momentum is strengthening. If this trend continues, Solana prices may continue to decline as the market leans heavily towards sellers.
SOL Price Prediction: Currently no new all-time high?
SOL EMA lines present an important scenario, with short-term lines still positioned above long-term lines, indicating a prolonged bullish setup.
However, the shortest EMA lines are trending downward and are nearly crossing over with the long-term lines, signaling the potential formation of a death cross. This pattern often indicates a shift from upward momentum to downward momentum, increasing caution among traders.
SOL Price Analysis. Source: TradingView
If a death cross forms, SOL's correction may intensify, leading to prices testing the nearest support level at 204 USD. If this level does not hold, SOL prices may decline further, targeting 194 USD.
On the other hand, if Solana regains upward momentum and reverses the trend, it could challenge the resistance level at 248 USD. Breaking above this level could push SOL prices beyond 264 USD, reaching a new all-time high and reinforcing bullish sentiment in the market.