The recent formation of a death cross on Solana’s daily chart has set off alarm bells for investors. SOL’s price faces a critical juncture, with a potential plunge looming if bulls cannot defend the key support range of $125 to $110. This technical indicator suggests a significant correction of up to 30%, targeting a downside price near $80.
What Led to the Death Cross Signal?
The death cross, a bearish technical pattern, occurs when a short-term moving average crosses below a long-term moving average. In Solana’s case, the 50-day moving average has dipped below the 200-day moving average, signaling a potential downtrend.
Implications for Solana Investors
For SOL investors, this ominous signal indicates a high probability of further price declines. If the support level at $110 is breached, the cryptocurrency could spiral down towards $80, marking a 30% drop from its current levels.
What’s Next for Solana?
The immediate focus for Solana traders is on defending the crucial support levels. Failure to hold above $110 could trigger accelerated selling pressure, pushing SOL towards the $80 mark. On the flip side, a strong bullish resurgence could invalidate the death cross pattern and lead to a potential recovery towards previous highs.
Join the Discussion
Do you think Solana will manage to stay above $100, or is a further drop inevitable? Share your thoughts below!
#Solana price prediction, #cryptocurrency technical analysis, #Solana death cross signal