In trading systems, the 100-day exponential moving average (EMA100) is often pivotal in identifying signals for traders; it's considered a cornerstone of technical analysis, along with the Relative Strength Index (RSI).
For Solana (SOLUSD), the EMA100 has been a significant indicator. By September 2023, Solana exhibited a bullish trend as it surpassed the EMA100. It successfully tested this level as support in October 2023, maintaining above this line. This bullish momentum continued well into March 2024, as Solana consistently traded above the EMA100, demonstrating stability and upward trends.
However, the scenario has dramatically shifted recently. Market sentiments have altered, and the short to mid-term outlook has evolved:
Solana has adopted a bearish stance, persisting for nearly two months.
The EMA100 now serves as a crucial support level at $140.
Should Solana break below this support, the price could potentially plummet quickly to under $100.