Amid the broader market mood swings, the Solana price slides down a bearish slope as it loses grip over $150. With increasing supply pressure, the last six days are painted red, and the downside risk increases.
Solana Price Performance
With a six-day bearish streak, the Solana price has dropped by 13.76%. Currently, the SOL token is trading at $138.64. Further, the bearish trend breaks below the 200-day EMA, and a death cross is imminent with the increased influence over the 50-day EMA. Solana’s bullish momentum has weakened as it lost its holds over the 150-day EMA, indicating a possible double-top reversal. With the peaks formed near $165, the neckline stands at $135. A breakdown could possibly push the crypto price to the $128 support level, thereby opening up buying opportunities. The bearish reversal nullifies last week’s 11.61% gain, forming a bearish engulfing candle on the weekly chart. In August, Solana dropped 19.35% and has been consolidating within March’s mother candle, fluctuating between $125 to $209.
Technical Indicators
**RSI**: The daily RSI line shows a sideways continuation between the oversold boundary at 30% and halfway with minor fluctuations overhead. With the potential drop coming to $128, the RSI line is expected to give a bullish divergence. **DMI**: The uptick in the ADX line following the bullish crossover of the VI lines bolsters Solana’s breakout chances.
SOL Price Forecast
As the streak of red candles continues in the daily chart, the overall sentiment for Solana remains highly bearish. The next support levels following the $128 are present at $115 and the $100 psychological mark. On the flip side, the 50-day EMA near the $150 psychological mark and the $165 peak remain crucial resistances. Considering that Solana’s price managed to surpass the $165 peak with a broader market recovery, the next challenge for Solana is to surpass the $182 resistance zone.
Solana's price remains under pressure, but opportunities for a rebound persist. Monitoring the $128 support level and preparing for potential breakthroughs above resistance levels is crucial.
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