š„ Solana Flashing Red ā Is a 20%+ Crash Inevitable?
SOL shows bearish flags, threatens double-digit drop
Monday's red Solana price nears the 200-day EMA at $162.42; a closure below might prompt additional decline.
CoinGlass data shows short holdings at a month-high. Bearish sentiment rises.
Support failure might push prices down to $141.41. Momentum indications indicate decline.
On Monday, Solana (SOL) fell to $165.40, indicating a possible collapse. SOL is nearing a crucial support level that might define its future move. Bearish mood rises as technical indicators turn red and short holdings reach a monthly high. If SOL falls below its crucial support level, selling pressure might increase, sending the token down double-digits to $141.
Solana price fell about 10% till Saturday after hitting $184.13 daily resistance on May 14. After finding support at its 200-day EMA at $162.42, it rebounded modestly the following day. This level is near daily support around $160 and the ascending trendline (drawn by connecting various low levels from April 7). A collapse suggests a bearish trend. As of Monday, it trades down at $165.40, near its key support zone.
A daily closing below $160 may extend SOL's drop by 14.6% to $141.41, its May 6 low.
The daily chart's RSI is 54, near its neutral level of 50, suggesting waning bullish momentum. RSI below 50 would cause significant negative momentum and a quick drop in Solana prices. On the daily chart, the MACD indicator is also crossing bearishly. A crossing would confirm another sell signal.
Another gloomy indicator. SOL's long-to-short ratio is 0.85, the lowest in a month, according to Coinglass. This ratio below one indicates pessimistic market sentiment as more traders bet on Solana's price falling.
