Solana, a cryptocurrency noted for its significant growth over the past year, is now showing signs of potential decline. Recent market conditions suggest its strong upward momentum may be weakening, as it continues to struggle below the crucial resistance level of $138.
Is the ‘Death Cross’ Signaling a Reversal?
Yes, the looming formation of a “death cross”—when the 50-day exponential moving average (EMA) falls beneath the 200-day EMA—is raising alarms among traders. This technical signal is often seen as an indicator of a possible reversal in long-term uptrends and could precede notable price declines.
Will Support Levels Hold for Recovery?
While the overall trend is downward, support levels might offer a chance for stabilization. The Moving Average Convergence Divergence (MACD) indicator hints that short-term selling pressure may be easing, potentially leading to a rebound if Solana stays above the $124 support level.
Falling below $124, however, could intensify selling, pushing the price toward $120—an important support since March 2024. Breaching this level may exacerbate the downward trend.
Key Takeaways for Investors
- Analyst Alan Santana warns that Solana’s growth in 2023 may not extend into 2024.
- Declining trading volumes are contributing to price decreases.
- Solana’s price might drop by up to 42%, potentially reaching $80.
- Underperformance despite Bitcoin‘s recovery suggests its bullish phase may be ending.
Investors are advised to remain cautious and monitor Solana’s price closely. The maintenance or loss of key support levels will significantly influence its future direction.