Solana (SOL) continues to attract user activity and significant trading volume on applications like Raydium, Pumpfun, and Jito. Nevertheless, SOL has dropped 17% over the past 30 days, losing the $100 billion market cap milestone and is currently at $90.6 billion.
Indicators such as BBTrend and ADX suggest that the downtrend is weakening, with signs that a recovery momentum may be imminent. Key levels at support $183 and resistance $194.99 will determine whether SOL can stabilize and move towards the $200 mark or face further bearish pressure.
Solana's BBTrend shows positive signs
Solana's BBTrend is currently at -0.43, the highest level since December 21. This is a significant recovery after hitting a low of -18.89 on December 22. This steady increase suggests that selling pressure is diminishing while buying pressure has been gradually increasing over the past few days.
Although SOL's BBTrend remains negative, the gradual approach to the neutral zone and potential shift to positive suggests a change in market sentiment, which could pave the way for price stabilization or a bullish trend in the short term.
BBTrend indicator of SOL | Source: TradingView
BBTrend, or Bollinger Band Trend, is a momentum indicator calculated based on Bollinger Bands, measuring the relationship between price and the midpoint of the band. Positive BBTrend values indicate upward momentum, while negative values signal bearish conditions.
If SOL's BBTrend turns positive again, as it did on December 20, this would confirm a complete reversal of bearish sentiment and could support a new bullish trend. In the short term, the recovery of BBTrend is a positive signal, indicating that SOL's price could rise further if buying momentum continues.
The current downtrend of SOL has weakened
The Directional Movement Index (DMI) chart of SOL shows that the Average Directional Index (ADX) is currently at 20.14, a sharp drop from 50 just three days ago. This decline indicates that trend strength has significantly weakened, although SOL remains in a downtrend.
The D+ indicator (positive directional indicator) has dropped to 14.99 from 24 two days ago, indicating weakening buying pressure. Conversely, D- (negative directional indicator) has risen to 24.11 from 17.3, reflecting increased selling activity. This combination indicates that sellers are dominating the market, although the weakening ADX suggests that the bearish trend may be losing momentum.
DMI indicator of SOL | Source: TradingView
ADX measures trend strength on a scale from 0 to 100, regardless of direction. A value below 20 indicates a weak trend, while a value above 25 indicates a strong trend. With Solana's ADX at 20.14, the current downtrend is losing intensity, although selling pressure remains greater than buying pressure.
In the short term, this could mean SOL's price stabilizes or consolidates, as the lack of a strong trend could create opportunities for buyers to return to the market. However, the continued dominance of D- could still push prices lower if sellers maintain control.
Solana price prediction: Will SOL reclaim the $200 mark?
Solana's price is currently trading within a range defined by support at $183 and resistance at $194.99. If the support level at $183 fails to hold, SOL's price could face further downward pressure, potentially falling to the next critical threshold at $175.
SOL/USDT 4-hour chart | Source: TradingView
This scenario would indicate continued selling momentum, making the support level at $183 a crucial threshold for maintaining stability in the short term.
On the other hand, if SOL regains positive momentum and breaks through the resistance at $194.99, this could open up opportunities to rise to the next targets of $204 and $215, marking a potential increase of 14% from the current level.
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