🔥 Solana Flashing Red — Is a 20%+ Crash Inevitable?
Solana (SOL) is under intense pressure, with multiple bearish indicators pointing to a potential double-digit correction. After falling to $165.40 on Monday, SOL is now hovering dangerously close to its 200-day EMA at $162.42—a critical support level. A daily close below this zone could trigger an extended drop to $141.41, the May 6 low.
Bearish Momentum Builds
• Price Rejection: SOL dropped nearly 10% since testing resistance at $184.13 on May 14. Despite a modest bounce, momentum remains weak.
• Key Support Threatened: The 200-day EMA and horizontal support at $160 converge near an ascending trendline dating back to April 7. Breaking this structure would confirm a bearish reversal.
• Technical Breakdown Looms:
• RSI: Currently at 54, teetering near the neutral 50 mark. A dip below 50 signals accelerating bearish momentum.
• MACD: Bearish crossover forming—another red flag for short-term price action.
Short Sellers Take Control
According to CoinGlass, SOL’s long-to-short ratio has fallen to 0.85, its lowest in a month. This signals rising bearish sentiment, with more traders betting against the price.
Key Levels to Watch:
• Critical Support: $160 (200-day EMA + trendline)
• Next Downside Target: $141.41 (May 6 low)
• Resistance Zone: $172–$180
• Bearish Trigger: Daily close below $160
If the $160 support cracks, the next leg down could be swift and severe—potentially wiping 15–20% off Solana’s value. Watch this zone closely; bulls must defend it to avoid a deeper correction.