Solana (SOL) Under Pressure Post-Rally
Solana (SOL) is seeing downward pressure after failing to maintain its recent rally, now trading lower alongside trends seen in Bitcoin and Ethereum. Despite a brief surge, SOL has dropped over 3% in the past 24 hours.
Technical Indicators Signal Bearish Sentiment
Indicators are showing bearish signals as sellers gain control short-term. Traders are monitoring support and resistance levels amid Solana’s struggle to regain bullish momentum.
SOL Ichimoku Cloud Indicates Bearish Trend
Currently, Solana is trading below the Ichimoku Cloud, suggesting a bearish trend. The price has fallen underneath both the Tenkan-sen (blue line) and Kijun-sen (red line), indicating ongoing downward momentum.
The upcoming cloud appears thin and flat, hinting at weak trend strength and a potential for continued sideways or bearish price action unless buyers intervene soon.
Furthermore, the Lagging Span (green line) sits below both the price and cloud, adding to the bearish outlook. If the price remains near the lower boundary of the cloud, this may present immediate resistance in case of a rebound attempt.
If the sellers maintain control, SOL might see further downside, while a reversal trend would require breaking back above the cloud.
DMI Indicates Sellers Regaining Control
Solana’s DMI chart shows the ADX has fallen to 15.87 from 22.18, reflecting a weakening trend. The Average Directional Index (ADX) gauges trend strength, where values above 25 indicate a strong trend and below 20 signify weak price action.
Simultaneously, the +DI has dropped significantly to 16.85 from 28.62, indicating a loss of bullish momentum, while the -DI has increased to 22.53 from 14.88, reflecting rising bearish pressure.
With the -DI now above the +DI and the ADX below 20, Solana may continue to face selling pressure or enter a range-bound phase as bears dominate short-term control.
Potential Downside for Solana
Following a similar pattern to Bitcoin and Ethereum, Solana briefly rallied on March 19-20 before reversing and dropping over 3% in the past day.
The price is nearing key support around $120; a break below this level could trigger a decline toward $112 or lower than $110.
Despite the recent corrections, Charles Wayn, the founder of decentralized Web3 super-app Galxe, noted that Solana’s achievements reflect that blockchains must find their niches.
> “As Solana celebrates its first futures ETF, it has disproven skeptics since its launch five years ago. While it may not be the ‘Ethereum killer,’ it has established itself in meme coin trading, peaking at $3 billion in daily trading volume.”
Wayn points to Solana’s success in the meme coin market, highlighting the importance of specialized Layer1 blockchains in the crypto ecosystem.
> “Specialized Layer1s focusing on niche aspects will thrive in attracting developers and users,” he added.
If Solana can regain bullish momentum, it could target resistances at $131 and $136, having recently attempted and failed to surpass these levels. A stronger recovery could lead to a rally towards $152.9, potentially reaching $179.85, marking its best price since early March.
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