SOL Price Downtrend Strengthens Amid Bearish Momentum
Solana (Sol) is currently trading about 15% below its all-time high set on November 22, while its market capitalization currently stands at $107 billion, surpassing tech giant Xiaomi. Although BBTrend was positive on December 8, indicating some upward momentum, it has since weakened and currently stands at 0.66, indicating that the trend may soon reverse.
Meanwhile, SOL’s DMI chart shows ADX rising, reaching 26.2, indicating that trend strength is increasing, although negative momentum still dominates. With the EMA line also turning bearish, SOL price It could face further losses, with support as low as $215 likely to be tested in the short term.
SOL BBTrend is positive, but that could change soon
After testing negative between November 27 and December 6, Solana BBTrend turned positive again, peaking at 2.8 on December 8.
However, it currently stands at 0.66, indicating that the positive trend is weakening.
BBTrend is a technical indicator derived from Bollinger Bands. It measures the strength and direction of a trend. Positive values for BBTrend indicate upward momentum, negative values indicate downward momentum.
Although SOL’s BBTrend has been trending positively recently, the current decline means the trend may not have enough strength to sustain the uptrend. If BBTrend turns negative again, it could signal a potential downtrend Solwhich could lead to further price declines.
Solana downtrend strengthens but appears to have stabilized
Solana The DMI chart shows that its ADX is currently at 26.2, up from around 16 a day ago.
This indicates that the strength of the trend is increasing, indicating that a more defined movement is starting to form.
ADX (Average Directional Index) is a technical indicator that measures the strength of a trend, regardless of its direction. It ranges from 0 to 100, with values above 25 indicating a strong trend and values below 20 indicating a weak trend. Currently, SOL’s ADX is 26.2, indicating that the trend is strengthening.
despite this, Sol It is in a downtrend, with a D+ (positive indicator) of 8.6 and a D- (negative indicator) of 25.8. Although D- has stabilized after reaching 25, it still shows that negative momentum dominates, suggesting that SOL may continue its downtrend unless there is a shift in momentum.
SOL Price Prediction: Will SOL Drop to $215 in December?
SOL’s EMA line is currently trending bearishly, with the short-term line trending downwards and price below it. One of the short-term lines just crossed the long-term line, indicating further downward pressure.
If this trend continues, Solana Price A test of the $221 support is likely, and if it fails to hold, the price may drop to $215.
However, if the uptrend resumes strong, SOL price A rebound and rise is likely to test resistance at $246, which suggests there may be room for a 10% upside from its current levels, especially if some of its biggest applications e.g. Pump music and Raydium, continue to attract users and numbers.
Disclaimer
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