Solana (SOL) Price Correction Threatens Death Cross Formation
Solana (Sol) prices reached an all-time high of $264 on November 22, but have since entered a correction, falling nearly 10% in the past 24 hours. Indicators such as BBTrend and DMI show growing bearish momentum.
The EMA line, while still showing a bullish structure, hints at a potential death cross that, if formed, could exacerbate the correction. As SOL approaches key support, its ability to regain bullish momentum will determine whether it retests resistance at $248 or faces further decline towards $194.
SOL BBTrend goes negative for the first time in 8 days
Solana BBTrend turned negative for the first time since November 18 and is currently at -0.54. BBTrend (i.e. Bollinger Band Trend) measures the momentum and direction of price relative to the Bollinger Bands, with positive values indicating an upward trend and negative values indicating a downward trend.
This shift into negative territory signals increasing bearish momentum and contrasts with the recent peak of 10.8 before SOL hit a new all-time high on November 20.
Although -0.54 may not seem significant, it reflects a clear change in market sentiment, with SOL currently down nearly 10% in the past 24 hours.
If BBTrend continues to fall, it could amplify bearish pressure and push Sol Entering a deeper downtrend. This could lead to further price corrections as sellers dominate and the market loses confidence in its short-term recovery potential.
Solana downtrend getting stronger
The SOL DMI chart shows its ADX rising to 27.24 from 21 yesterday, indicating Strengthen trend momentum. ADX (Average Directional Index) measures the strength of a trend, with values above 25 indicating a significant trend, whether bullish or bearish.
exist Solana’s In this case, the rise in ADX reflects the increasing momentum of the current downtrend, indicating that selling pressure is intensifying.
The DMI indicator further reinforces this bearish sentiment, with D+ at 12.7 and D- at 36.6. This large gap indicates that bearish power (D-) clearly outweighs bullish power (D+).
ADX above 25 and growing in a downward trend indicates that negative momentum is consolidating. If this trend continues, Solana Price Prices could fall further as the market tilts heavily toward sellers.
SOL Price Forecast: No new all-time highs yet?
Sol The EMA lines present a key picture, with the short-term line remaining above the long-term line, indicating a lingering bullish pattern.
However, the shortest-term EMA line is trending downward and is approaching a potential crossover with the longer-term line, indicating a possible death cross. This pattern usually signals a shift from bullish to bearish momentum, causing traders to be cautious.
If a death cross forms, the SOL correction could intensify, causing the price to test the recent support at $204. If it fails to hold this level, SOL price may fall further with a target of $194.
On the other hand, if Solana regains its bullish momentum and reverses the trend, it could challenge the $248 resistance. A breakout of this level could push SOL price It broke through $264, setting a new all-time high, enhancing bullish sentiment in the market.
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