Solana's cryptocurrency has dropped more than 6% in the past week, trading below $150 since March 6 as multiple technical indicators point to continued bearish momentum. The digital asset is approaching critical support at $120, with analysts warning that a breach could send prices below $110 for the first time since February.
What to Know:
- Multiple technical indicators including a death cross and rising ADX suggest strengthening downward momentum
- Solana has been trading below the key $150 threshold for over three weeks
- If $120 support fails, prices could quickly fall to $112 and potentially below $110
The Ichimoku Cloud chart for Solana displays unmistakable bearish signals, with current prices trading below both the Kijun-sen (red line) and Tenkan-sen (blue line) indicators. This technical formation typically signals continued downward pressure.
The Lagging Span has positioned itself below both the price candles and the cloud, further reinforcing the negative outlook that traders are monitoring closely.
"The Kumo ahead is red and descending, suggesting that resistance remains strong in the near term," noted technical analysts studying the pattern. The cryptocurrency has consistently failed to break through short-term resistance levels and remains confined within a downward channel that has persisted through March.
The thin nature of the current cloud indicates particularly weak support mechanisms, leaving Solana vulnerable to accelerated declines if the bearish momentum intensifies beyond current levels. Technical traders suggest that for any meaningful reversal to occur, Solana would need to breach the Kijun-sen and push decisively toward the cloud—a scenario that appears increasingly unlikely given current market conditions.
Strengthening Downtrend Confirmed by DMI Indicators
Evidence of strengthening selling pressure appears in Solana's Directional Movement Index (DMI), where the Average Directional Index (ADX) has surged to 40.87, up dramatically from 19.74 just three days earlier. Market technicians consider ADX values above 25 to indicate strong trends, while readings exceeding 40 signal particularly powerful directional movements.
This rapid ADX increase confirms not only the existence of a downtrend but its accelerating strength. Simultaneously, the positive directional indicator (+DI) has fallen from 17.32 to 8.82, while the negative directional indicator (-DI) has climbed to 31.09, maintaining that elevated position for two consecutive days.
"This setup suggests that the sellers are firmly in control," explained cryptocurrency analyst Ryan Thompson, who has been tracking Solana's movements. "The strengthening downtrend shown by these indicators typically precedes continued price deterioration."
As long as the -DI maintains its dominance over the +DI and the ADX remains at these elevated levels, technical analysts expect Solana to continue facing significant downward pressure in the immediate future.
Critical Support Level Approaching
The formation of a death cross—where short-term moving averages cross below longer-term ones—represents another concerning development for Solana investors. This technical pattern has historically signaled sustained bearish movements in various financial markets.
Solana is now rapidly approaching its critical support level at $120. If selling pressure breaks through this threshold, technical analysis suggests prices could quickly decline to $112, potentially pushing below the psychologically important $110 level for the first time since February 2024.
Not all analysts remain bearish, however. Some point to the possibility of a technical bounce if buyers emerge at current levels. "If bulls step in and buying pressure returns, SOL could rebound toward resistance at $136," noted cryptocurrency strategist Maria Vasquez. A breakout above that level might enable a push toward $147, which functioned as formidable resistance just five days ago.
The coming days will prove critical for Solana's price direction as it tests these key support levels against a backdrop of deteriorating technical indicators and sustained selling pressure.
Conclusion
Solana's bearish technical outlook presents significant challenges for investors as multiple indicators align to suggest continued downward pressure. With critical support at $120 now being tested, the cryptocurrency faces potential further declines below $110 if current momentum persists.