- Solana is facing strong bearish pressure as it trades below key technical indicators, risking a drop to $112 if support at $120 fails.
- Solana’s dominance in meme coin trading remains a bright spot, even as bearish signals dominate its short-term price action.
Solana (SOL) is under significant downside pressure, struggling to hold key support levels as bearish indicators dominate the charts. After briefly rallying earlier this week, SOL has dropped over 3% in the past 24 hours, mirroring broader market trends seen in Bitcoin and Ethereum. With sellers regaining control, the question remains: can Solana avoid further decline?
Ichimoku Cloud Signals Bearish Trend
Solana is currently trading below the Ichimoku Cloud, a key indicator suggesting bearish momentum. The price has slipped beneath both the Tenkan-sen (blue line) and Kijun-sen (red line), reinforcing downward pressure. Additionally, the cloud ahead appears thin and flat, signaling weak trend strength and a potential continuation of sideways or bearish movement unless strong buying interest emerges.
The Lagging Span (green line) remains below both the price and the cloud, further supporting the bearish outlook. If SOL attempts a rebound, the lower boundary of the cloud will serve as immediate resistance.
DMI Shows Sellers in Control
The Directional Movement Index (DMI) suggests that bears have taken charge. The Average Directional Index (ADX) has dropped to 15.87 from 22.18, indicating a weakening trend. Meanwhile, the +DI (bullish strength) has sharply declined to 16.85 from 28.62, while the -DI (bearish strength) has risen to 22.53 from 14.88.
With the -DI now above the +DI and the ADX below 20, Solana could face continued selling pressure or enter a range-bound phase, making a quick recovery less likely.
Key Support and Resistance Levels to Watch
SOL is currently testing critical support at $120. If this level fails, the next major downside target lies around $112, with the possibility of dipping below $110 should selling pressure intensify.
On the flip side, a bullish turnaround would require Solana to break above $131 and $136, key resistance zones it has struggled to surpass. A stronger recovery could push SOL towards $152.9 and potentially $179.85, marking its highest level since early March.
Solana’s Niche Amid Market Struggles
Despite short-term bearish trends, Solana’s position in the crypto market remains strong. Charles Wayn, founder of decentralized Web3 super-app Galxe, highlights Solana’s dominance in the meme coin sector.
“Solana has truly found its niche in the crypto market over the last five years – and now it’s time for other blockchains to find theirs,” Wayn stated. With meme coin trading volume hitting $3 billion at its peak, Solana continues to attract users despite market volatility.
As SOL battles key technical levels, traders will be watching closely to see if it can reclaim bullish momentum or slide further into bearish territory.
