Solana Price Forecast: SOL flashes bearish signals, risks double-digit crash

Mitrade
coverImg
Source: DepositPhotos
  • Solana price trades red on Monday, nearing the 200-day EMA at $162.42; a decisive close below could trigger further downside.

  • Bearish sentiment spikes, with CoinGlass data showing short positions at their highest level over a month.

  • Momentum indicators show growing weakness, with a potential downside target near $141.41 if support fails.

Solana (SOL) price shows early signs of a potential breakdown as it trades lower at $165.40 on Monday. SOL is approaching a key support level that could determine its next major move. Technical indicators flash red, and bearish sentiment intensifies, with short positions hitting a monthly high. If SOL closes below its critical support level, the selling pressure could accelerate, potentially driving the token into a double-digit decline toward the $141 mark.

Solana shows a bearish bias in momentum indicators

Solana price faced rejection around the $184.13 daily resistance level on May 14 and declined nearly 10% until Saturday. However, it recovered slightly the next day after finding support around its 200-day EMA at $162.42. This level roughly coincides with the daily support at $160 and the ascending trendline (drawn by joining multiple low levels since April 7), and a breakdown indicates a bearish trend. At the time of writing on Monday, it trades down at around $165.40, approaching its critical support zone.

If SOL continues its correction and closes below $160 on a daily basis, it could extend the decline by 14.6% from its current levels to retest its May 6 low of $141.41.

The Relative Strength Index (RSI) on the daily chart reads 54, pointing toward its neutral level of 50, indicating fading bullish momentum. If the RSI moves below its neutral level of 50, it would give rise to strong bearish momentum and a sharp fall in Solana prices. The Moving Average Convergence Divergence (MACD) indicator is also switching to a bearish crossover on the daily chart. If the crossover occurs, it would confirm another sell signal.

SOL/USDT daily chart

SOL/USDT daily chart

Another sign of a bearish outlook. According to Coinglass’s data, SOL’s long-to-short ratio reads 0.85, the lowest level over a month. This ratio below one reflects bearish sentiment in the markets as more traders are betting on Solana's price to fall.

Solana Long-to-short ratio chart. Source: Coinglass

Solana Long-to-short ratio chart. Source: Coinglass

However, if SOL finds support around the daily level at $160 and recovers, it could extend the recovery toward the next daily resistance at $184.13.

Read more

  • Gold falls amid easing trade tensions, profit-taking 
  • Why the Altcoin Market Cap Decline May Deepen in October
  • Silver Price dives below $50.00 as the Dollar rallies
  • EUR/USD picks up amid a brighter sentiment ahead of the US NFP release
  • Australian Dollar remains stronger following Westpac Consumer Confidence
  • BitMine and Strategy Capitalize on Market Weakness to Expand Crypto Portfolios
  • * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

    goTop
    quote
    Related Articles
    placeholder
    Top 3 Price Prediction: BTC struggles below key resistance, ETH and XRP eye further weaknessBitcoin (BTC) price steadies around $108,500 at the time of writing on Wednesday, after facing rejection from the key resistance level the previous day. Ethereum (ETH) and Ripple (XRP), following BTC’s footsteps, are signaling weakness and hinting at a correction ahead.
    Author  FXStreet
    1 hour ago
    Bitcoin (BTC) price steadies around $108,500 at the time of writing on Wednesday, after facing rejection from the key resistance level the previous day. Ethereum (ETH) and Ripple (XRP), following BTC’s footsteps, are signaling weakness and hinting at a correction ahead.
    placeholder
    BlackRock helping Bitcoin whales transition their holdings toward ETFsBlackRock is reportedly helping Bitcoin whales pivot to Wall Street by facilitating equal conversion of their coins to ETF shares.
    Author  FXStreet
    1 hour ago
    BlackRock is reportedly helping Bitcoin whales pivot to Wall Street by facilitating equal conversion of their coins to ETF shares.
    placeholder
    Bitcoin Price Forecast: BTC falls below $108,000 amid economic uncertainty, ETF outflowsBitcoin (BTC) price trades below $108,000 at the time on Tuesday, after facing rejection from a previously broken trendline, signaling renewed selling pressure.
    Author  FXStreet
    21 hours ago
    Bitcoin (BTC) price trades below $108,000 at the time on Tuesday, after facing rejection from a previously broken trendline, signaling renewed selling pressure.
    placeholder
    Why the Altcoin Market Cap Decline May Deepen in OctoberThe crypto market has been turbulent in October, with altcoin market capitalization dropping another 15%. Could this downturn worsen before October ends?
    Author  Beincrypto
    Oct 20, Mon
    The crypto market has been turbulent in October, with altcoin market capitalization dropping another 15%. Could this downturn worsen before October ends?
    placeholder
    Solana Price Forecast: SOL extends recovery as trading volume surgesSolana (SOL) price extends its recovery, trading above $192 at the time of writing on Monday, after rebounding from the ascending trendline support last week.
    Author  FXStreet
    Oct 20, Mon
    Solana (SOL) price extends its recovery, trading above $192 at the time of writing on Monday, after rebounding from the ascending trendline support last week.
    Live Quotes
    Name / SymbolChart% Change / Price
    SOLUSD
    SOLUSD
    0.00%0.00

    cryptocurrency Related Articles

    • Trading Chart Patterns:Ultimate Guide to Price Action
    • How to Day Trade Crypto? Simplest Day Trading Strategy Ever
    • Places that Provide Cheapest Ways to Buy Bitcoin In 2025
    • 10 Best Crypto With Most Potential to Buy and invest in 2025 - Top Picks from Expert Traders
    • What is Starknet (STRK)? Value of Starknet Coin and Project Development
    • How To Buy Bitcoin In Malaysia? Top 7 Best Crypto Exchanges & Trading Apps

    Click to view more