Solana (SOL) price is currently struggling at the $195 resistance level, having declined 27% from its peak. Although the downward momentum is easing, the price is still facing resistance at this level. Technical indicators suggest that selling pressure is starting to ease and buyers are cautiously returning.
BBTrend continues to remain in the negative territory but has started to show signs of recovery. This suggests that the downtrend is weakening but still continuing. The DMI, on the other hand, highlights that the buying and selling pressures are close together and price action remains sluggish.
Solana’s BBTrend indicator fell to -18.89 on December 22, its lowest level since August. However, it has remained in negative territory since December 21 and is currently at -14.64. This suggests that there may be a shift in market sentiment and that selling pressure is starting to ease. Buyers may be cautiously returning to the market. BBTrend is a momentum indicator derived from Bollinger Bands, providing information about the direction and strength of a trend by measuring the difference between the price and the midpoint of the bands. Negative BBTrend values indicate a downtrend, while positive values indicate an uptrend.
BBTrend’s rise from -18.89 to -14.64 signals that the downtrend is weakening and a recovery may be possible in the short term. However, with BBTrend moving into positive territory, the market may enter a more significant uptrend, and price action may remain stagnant or sideways for now.
Solana’s DMI (Directional Movement Index) indicator shows that the ADX reading of 34 has fallen sharply from 50 in the last 24 hours. While an ADX above 25 indicates a strong trend, the recent decline suggests that the strength of SOL’s current downtrend is weakening. This decreasing trend strength suggests that, although the decline continues, selling pressure is beginning to wane, which could lead to a lull in price action or a reversal if buyer power increases in the short term.
The positive side (D+) of the DMI is at 19.34, while the negative side (D-) is at 19.81, indicating that the buying and selling pressures are almost equal. This balancing implies that the downtrend is slowing down and the price may stagnate. In the short term, this could create an opportunity for a recovery.
Solana Price Prediction: Targeting $200 Level
Solana price is currently facing critical resistance near $195. While the EMA lines are in a bearish configuration where the short-term lines are below the long-term lines, the recent upward move of the short-term EMAs suggests that a potential golden cross is imminent, which could signal a trend reversal.
If Solana price breaks the $195 resistance, the next target could be $204, followed by an increase to $215, which would indicate a significant recovery. On the other hand, if BBTrend remains in the negative territory and the downtrend gains strength, SOL price could test the $183 support level. A breakout of this level could lead to a drop to $175.