Solana (SOL) Analysis: Understanding the Death Cross Impact

Monday, 16 September 2024, 00:54

Solana (SOL) analysis shows a looming death cross threatening its 11-month bullish streak. The market has shifted sentiment, with critical support at $120 now in focus. Investors are concerned as Solana approaches pivotal price levels that could redefine its trajectory.
Beincrypto
Solana (SOL) Analysis: Understanding the Death Cross Impact

Solana (SOL) Faces New Dangers

Solana is on the verge of forming a death cross, a bearish technical pattern where the 200-day Exponential Moving Average (EMA) crosses above the 50-day EMA. Should this occur, it would signal a potential end to the 11-month bull run that started in October 2023. The looming death cross has created concern among investors who have been bullish on Solana for nearly a year.

Market Structure Breakdown

A breakdown in the market structure could invalidate the gains that SOL has made during this period. While the macro outlook leans bearish due to the potential death cross, the Moving Average Convergence Divergence (MACD) indicator paints a more nuanced micro picture. The MACD suggests that bearish momentum could be waning, implying a possible bounce back for Solana.

Support Levels and Future Performance

  • Currently trading at $130
  • Potential bounce off $124 support level
  • Critical safety net at $120 support floor

If Solana can bounce off the $124 level as it did in early September, it may stave off further losses. Breaching the resistance at $138 would indicate that SOL could continue its upward trajectory despite recent bearish concerns. However, if the death cross occurs, Solana could face intense selling pressure, driving its price below $120, leading to significant losses.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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