Solana Approaches Death Cross as Market Sell-off Intensifies

Solana (SOL) is nearing a “death cross,” a bearish technical signal. The price decline raises concerns about further losses, but potential scenarios include a rebound if key support holds.

Solana (SOL) Faces Death Cross Amid Market Volatility

Solana (SOL) is approaching a critical technical threshold as it nears the formation of a death cross, a pattern that often signals prolonged bearish momentum. This occurs when an asset’s 50-day simple moving average (SMA) drops below its 200-day SMA, indicating weakening short-term momentum relative to the long-term trend.

Technical Indicators Confirm Bearish Risks

Currently, Solana’s 50-day SMA stands at $188.71 and has started declining, setting the stage for a potential crossover with the 200-day SMA at $184.03 in the coming days. If this crossover happens, it could mark a significant shift in market sentiment, particularly as overall cryptocurrency prices remain under pressure.

This bearish trend coincides with a broader sell-off in risk assets, fueled by diminishing expectations of further Federal Reserve rate cuts. Alongside crypto, U.S. equities have also declined, as investors shift towards safer assets.

Solana’s Declining Price Raises Concerns

Solana is on track for its fifth consecutive day of losses since March 6, dropping to $120.35 on Monday—its lowest level since September 2024. As of writing, SOL has declined 5.11% in the past hour, 9.11% in the last 24 hours, and 23.10% over the past week, currently trading at $121.12.

Possible Scenarios for Solana’s Future

1. Historical Recovery After Death Cross

The last time Solana experienced a death cross was in September 2024, which initially led to a price bottom. However, in the following two months, SOL recovered strongly, eventually reaching highs of $264 after forming a golden cross—a bullish opposite to the death cross.

2. Further Decline to Key Support Levels

Alternatively, the formation of another death cross could trigger a deeper price drop. Key support levels to watch include $109 and $88. If Solana fails to sustain these levels, further downward pressure could push the asset into a longer-term correction.

3. Potential Price Rebound from Critical Levels

If SOL manages to hold above these critical support zones, it could attract buyers seeking value, potentially leading to a price recovery.

Another likely scenario is consolidation, where Solana trades within a defined range before its next major move. A stronger reversal signal would require price stability and increased demand to counteract the bearish momentum.

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