Solana (SOL) price is up 16.96% over the past seven days and is now very close to reaching a new all-time high. The recent rally has positioned SOL just under 3% from its previous ATH, signaling strong bullish sentiment in the market.
However, indicators such as BBTrend and ADX suggest that the current uptrend is losing steam, raising caution for a potential consolidation or pullback.
BBTrend is still positive
Solana currently has a BBTrend of 9.56, marking a sustained positive trend since November 18. While it remains in bullish territory, the value is down from its monthly high of 18.64, indicating a decline in trend strength.
This suggests that although SOL is still in an uptrend, the momentum behind its recent price movements may be weakening.
SOL BBTrend. Fonte: TradingView
BBTrend measures the strength and direction of price trends using Bollinger Bands, with positive values signaling an uptrend and negative values indicating a downtrend.
At the current level, SOL’s BBTrend reflects moderate bullish sentiment, although it is much weaker compared to the beginning of the month. This could mean that the current uptrend is leveling off, leaving SOL vulnerable to consolidation or a potential reversal if buying pressure eases further.
Solana’s Uptrend Is Not As Strong As It Was
The DMI chart shows its ADX at 20.71, indicating a weaker trend than earlier in 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 suggests that SOL's trend has weakened significantly, reflecting reduced momentum after its previous rise.
SOL DMI. Fonte: TradingView
With the Positive Directional Index (D+) at 27.5 and the Negative Directional Index (D-) at 13.8, bullish pressure continues to outweigh bearish activity.
However, the weak ADX indicates that this bullish momentum lacks the strength to sustain a significant upward move. For SOL price to regain a strong uptrend, the ADX would need to rise above 25.
SOL Price Prediction: A New All-Time High Soon?
SOL’s price is currently less than 3% away from its previous all-time high (ATH). If the altcoin maintains its current uptrend, it is positioned to rally and potentially reach a new ATH at $260.
Breaking this level could pave the way for further gains, with the price possibly targeting $265 or even $270.
SOL Price Analysis Source: TradingView
However, as indicated by BBTrend and ADX, the trend strength appears to be weakening, leaving room for a reversal. If a downtrend emerges, SOL price could test its support levels at $204 and $194.
If these supports fail to hold, the price could drop further to $154, marking a significant correction from its current levels.
The article Solana is at 3% from a new all-time high appeared first on BeInCrypto Brasil.
