Since April 23, the price of Solana has been oscillating in a narrow trading range, facing resistance around $153.67 and finding support near $145.68.
The growing wave of bearish pressure threatens to break this range downward, with a key technical indicator on the verge of confirming a significant sell signal.
Solana faces the risk of a decline as sellers strengthen control
The Moving Average Convergence Divergence (MACD) indicator for SOL is poised to form a 'death cross', a bearish crossover when the MACD line drops below the signal line. At the time of writing, the MACD line of the token (blue) is near the signal line (orange), awaiting a catalyst to drop below. This pattern often precedes a sustained downward trend and is widely regarded by traders as a sign of weakening price strength.
Moreover, the balance of power (BoP) for SOL is currently negative, reinforcing the downward trend. This indicates that sellers have gained control of the market. At the time of publication, this indicator stands at -0.12. The BoP indicator measures the strength of buying pressure compared to selling pressure by comparing the closing price to the trading range over a certain period.
When the BoP of an asset is positive, it signals that buyers are in control, indicating strong upward momentum and potential for further price increases.
On the other hand, as is the case with SOL, a negative BoP value indicates that sellers dominate the market. This suggests increased downward pressure on SOL and hints at a possible start of a new declining phase.
The SOL token faces a test of key support amid increasing selling pressure
With the growing bearish momentum, SOL risks breaking below the support level at $145.68. A decisive break below this threshold would confirm a short-term downward trend and potentially trigger a deeper decline to $142.32.
If buyers cannot regain control at this point, SOL may decline further to test lower support at $133.94. However, this bearish outlook could be invalidated if new demand emerges and buying interest strengthens. In such a bullish scenario, SOL could overcome resistance at $153.67, opening the way for a rally to $171.50.
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