Solana (SOL) Price Down 15% From All-Time High, More Declines Possible

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As a seasoned analyst with over a decade of experience in the crypto market, I’ve seen my fair share of bull runs and bear markets. Currently, Solana (SOL) is showing some interesting technical signals that warrant closer attention.

Currently, Solana’s (SOL) price hovers around 15% below its peak achieved on November 22. Its market capitalization now stands at a staggering $107 billion, exceeding tech titan Xiaomi’s valuation. Although a bullish BBTrend was observed on December 8, hinting at potential growth, it has since lost strength and currently sits at 0.66, implying that the trend might flip soon.

Currently, Solana’s DMI chart indicates a growing ADX value of 26.2, suggesting that the strength of the trend is strengthening, despite ongoing negative momentum. Additionally, the EMA lines are shifting to a bearish stance, which could lead to additional price drops for SOL. In the short term, it’s possible that SOL may approach support levels as low as $215 due to these trends.

SOL BBTrend Is Positive, But That Could Change Soon

Following a period of negativity from November 27 to December 6, the Solana BBTrend once more showed positivity and reached its highest point of 2.8 on December 8.

However, it is currently at 0.66, suggesting that the positive trend is weakening.

The BBTrend is a specialized technical tool that’s calculated based on Bollinger Bands. Its function is to gauge the intensity and direction of market trends. A BBTrend value greater than zero points towards an uptrend, signifying increasing strength, while a value less than zero indicates a downtrend, suggesting declining power.

Despite SOL’s BBTrend showing an uptick lately, its recent dip suggests that the momentum might not be robust enough to continue the upward trajectory. If BBTrend reverts to a negative trend, it may hint at an approaching downward trend for SOL, potentially causing further price drops.

Solana Downtrend Turned Strong But Appears To Have Stabilized

Solana DMI chart shows its ADX is currently at 26.2, up from around 16 just a day ago.

This suggests that the intensity of the pattern is growing, implying that a clearer direction or development may be emerging.

The Average Directional Index (ADX), a technical tool, helps assess the strength of any trend, whether it’s going up or down. It scores between 0 and 100, with readings above 25 signifying a robust trend, whereas values less than 20 hint at a weak trend. At present, SOL’s ADX stands at 26.2, suggesting that the current trend is growing stronger.

Regardless, Solana (SOL) appears to be on a downward trajectory, as its positive directional indicator (D+) stands at 8.6, while its negative directional indicator (D-) is significantly higher at 25.8. Although D- has stopped decreasing after reaching 25, it signifies that the negative momentum currently holds more power, suggesting that Solana could persist in its downtrend unless there’s a reversal in the momentum trend.

SOL Price Prediction: Will SOL Fall To $215 In December?

At present, SOL’s Exponential Moving Averages (EMA) are indicating a bearish movement. The shorter-term EMAs are descending, and the price is located below them, hinting at a potential drop. Recently, one of the short-term EMAs has intersected with a long-term EMA, signaling increased pressure for the price to decrease.

Should this pattern persist, the Solana price may encounter resistance at approximately $221. If this resistance is not strong enough, there’s a possibility the price could fall to around $215.

Should the uptrend in Solana’s price regain momentum, I foresee a potential recovery and upward movement towards the resistance at $246 – a 10% increase from its current position. This optimistic outlook is bolstered by the continued growth of some of its significant applications like Pumpfun and Raydium, which are attracting an increasing number of users and volume.

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2024-12-09 23:34