Since April 23, the price of Solana has been moving in a narrow range: resistance at $153.67 on top, and support at $145.68 on the bottom. However, the increasing selling pressure creates a dangerous situation
Solana (SOL) is in danger: sellers are strengthening control
The MACD indicator for SOL is preparing to form a 'death cross': the MACD line (blue) is near the signal line (orange), waiting for a catalyst for decline. This pattern is considered a classic bearish signal that portends a sustained downward trend.
What is a 'death cross'
'Death cross' is a technical analysis pattern that signals an impending sell-off. On the MACD, it occurs when the fast MACD line (DIF) crosses below the signal line (DEA).
SOL MACD. Source: TradingView
The Balance of Power (BoP) for Solana (SOL) is also in negative territory, which strengthens the downward trend. This means that sellers have gained control of the market. At the time of publication, this indicator stands at -0.12.
SOL BoP. Source: TradingView
The BoP indicator assesses the balance between buyers and sellers by comparing the closing price with the trading range over a certain period. A negative BoP value indicates seller dominance and foreshadows an increase in bearish pressure.
SOL is testing key support against the backdrop of increasing selling pressure
With the strengthening of bearish momentum, Solana risks breaking the support level at $145.68, confirming a short-term downward trend with the next target at $142.32. If buyers cannot regain control at this level, the price may test the lower boundary of the broad range at $133.94.
SOL price analysis. Source: TradingView
The bearish forecast will lose relevance if new demand emerges. In this case, SOL may overcome resistance at $153.67 and aim for $171.50.