Solana (SOL) price has faced significant challenges recently, falling 21% in 30 days. Despite this decline, the altcoin remains the 6th largest cryptocurrency in the market, with a market cap of approximately $90.8 billion.
Technical indicators such as BBTrend, DMI, and EMA lines suggest that although the downtrend persists, its strength has waned, and the price is currently consolidating. Whether SOL price will continue its bearish trajectory or start a recovery depends on key support and resistance levels and changes in market momentum.
SOL BBTrend is approaching zero
Solana’s BBTrend is currently at 0.18, indicating a neutral position after recovering from deep negative levels from December 23.
The indicator briefly reached a positive value of 3.09 on December 27, signaling short-term bullish momentum. However, it has since declined and stabilized around 0.18, suggesting the absence of a strong directional bias in the current price action.
SOL BBTrend. Fonte: TradingView
BBTrend is a technical indicator derived from Bollinger Bands that measures the strength and direction of a trend. Positive BBTrend values generally indicate bullish momentum, while negative values suggest bearish momentum. When BBTrend is close to zero, as it is currently for SOL, it reflects a neutral or range-bound market with no strong trend dominance.
In the short term, Solana's BBTrend at 0.18 suggests a potential consolidation phase, where price volatility may decrease until a clearer trend emerges.
Bears are still here
Solana’s DMI chart shows that its ADX is currently at 14.5, down from nearly 20 just a day ago. This drop reflects a weakening in trend strength, indicating that the recent market momentum is losing steam.
Meanwhile, the +DI (Directional Indicator) is at 16.2, and the -DI is at 19.7, suggesting that bearish pressure remains slightly dominant as the -DI is higher than the +DI. This setup highlights that the price is still struggling to fully reverse its downtrend.
SOL DMI. Fonte: TradingView
The Average Directional Index (ADX) measures the strength of a trend, regardless of its direction, on a scale of 0 to 100. Values above 25 indicate a strong trend, while readings below 20, such as SOL's current 14.5, signal weak or absent trend strength. With the +DI below the -DI, a downtrend is still in place, but a declining ADX suggests that the trend lacks significant momentum.
In the short term, SOL may continue to consolidate or move sideways unless there is a shift in momentum that pushes the +DI above the -DI, accompanied by a rising ADX to indicate a stronger trend.
Price Prediction: Will the Downtrend Persist?
Solana’s EMA lines continue to show a bearish setup as the short-term EMAs remain below the long-term EMAs. This alignment reflects continued bearish momentum with no immediate signs of a bullish reversal.
The bearish setup of the EMAs suggests that selling pressure is likely to persist, especially if the price approaches the next strong support level at $182. If this support fails, the downtrend could intensify, potentially pushing Solana price towards $176.
SOL Price Analysis. Source: TradingView
On the other hand, if SOL price manages to reverse its current trend and establish an uptrend, it could test the resistance at $201. Breaking above this level would indicate growing bullish momentum and could pave the way for further upward movement.
However, for such a shift to occur, the EMA lines would need to start converging and eventually flip into a bullish configuration, with the short-term EMAs crossing above the long-term ones. Until then, the bearish structure of the EMAs continues to signal caution for the near-term.
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