The price of Solana (SOL) has faced significant challenges recently, dropping by 21% over the past 30 days. Despite this decline, SOL remains the sixth-largest cryptocurrency on the market, with a market cap of around $90.8 billion.
Technical indicators such as BBTrend, DMI, and EMA suggest that while the downtrend continues, its strength has diminished, and the price is currently in a consolidation phase. Whether SOL price will continue its downward path or start a recovery depends on key support and resistance levels and market momentum shifts.
SOL BB trend is approaching zero
SOL BBTrend is currently at 0.18, indicating a neutral stance after recovering from deep negative levels that began on December 23.
The index briefly peaked at a positive value of 3.09 on December 27, indicating short-term bullish momentum. However, it has since declined and stabilized around 0.18, indicating the absence of a strong directional bias in the current price action.
BBTrend is a technical indicator derived from Bollinger Bands that measures the strength and direction of a trend. Positive BBTrend values typically indicate bullish momentum, while negative values indicate bearish momentum. When BBTrend is close to zero, as is currently the case for SOL, it reflects a neutral or rangebound market, with no strong trend dominating.
In the short term, Solana BBTrend at 0.18 indicates a potential consolidation phase, where price volatility may decrease until a clearer trend emerges.
The bears in Solana are still here.
Solana’s DMI chart shows that the ADX is currently at 14.5, down from nearly 20 just a day ago. This decline reflects weakening trend strength, suggesting that recent market momentum is losing steam.
Meanwhile, +DI (Directional Indicator) is at 16.2, and -DI is at 19.7, indicating that the bearish pressure is still slightly dominant as -DI is above +DI. This formation highlights that SOL price is still struggling to fully reverse its downtrend.
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 the current SOL of 14.5, indicate weak or no trend strength. With +DI below -DI, the downtrend is still in place, but a decline in the ADX indicates that the trend lacks significant momentum.
SOL may continue to consolidate or move sideways in the short term unless there is a change in momentum that pushes +DI above -DI, accompanied by a rising ADX to indicate a stronger trend.
SOL Price Prediction: Will the Downtrend Continue?
Solana’s EMA lines continue to show a bearish setup, with the short-term EMAs remaining below the long-term EMAs. This alignment reflects continued bearish momentum, with no immediate signs of a bullish reversal.
The bearish EMA formations suggest that the selling pressure is likely to continue, especially if the price approaches the next strong support level at $182. If this support fails, the downtrend could intensify, which could push Solana price to $176.
On the other hand, if SOL price manages to reverse its current trend and establish an uptrend, it may test the resistance at $201. Breaking this level will indicate increasing bullish momentum and may pave the way for further upward movement.
However, for such a turn to occur, the EMA lines must start converging and eventually turn into a bullish setup, with the short-term EMAs crossing above the long ones. Until then, the bearish EMA structure continues to signal short-term caution.