Solana (SOL) price experienced a "death cross" on the daily chart on March 12, potentially accelerating a sell-off and risking a drop below $100.
Solana Technical Analysis
A death cross occurs when a bearish crossover happens between the 50-day and 200-day simple moving averages (SMAs), with the long-term indicator above the short-term one. Last month, Solana also experienced a death cross on the exponential moving averages (EMAs), which led the price to drop by 17%.
Historical Aspects and Implications
Historically, the odds are neutral for Solana. Since 2022, SOL has undergone a death cross three times. The first one in 2022 led to a 90% drop, the second in September 2024 reversed soon. The current market structure and sentiment resemble those of 2022.
Support at $125: What to Expect?
Solana must hold support between $125 and $110 for a potential bullish reversal. A close below $125 could increase the likelihood of a drop below $100, while bulls hope for a bullish divergence between the price and the Relative Strength Index (RSI) on daily and 4-hour charts.
The situation for Solana remains uncertain, and maintaining key support levels is crucial to prevent further declines.
