Solana (SOL) has declined by 5% over the past seven days and has traded below $180 for six consecutive days. Despite this, institutional interest in SOL is growing as major players accumulate and stake significant volumes ahead of a potential altcoin season.
However, technical indicators show signs of weakness, including a negative BBTrend, a bearish Ichimoku Cloud configuration, and an impending death cross of the EMA. These mixed signals suggest that while long-term confidence is rising, short-term momentum remains under pressure.
Solana is attracting institutional interest, but the Ichimoku Cloud signals uncertainty.
Institutional accumulation of Solana is strengthening in May 2025, indicating strong confidence ahead of a potential altcoin season.
Despite the trading volumes of altcoins remaining below previous peak levels, major players are accumulating SOL—staking significant volumes and adding to long-term assets.
Over 65% of the SOL supply is currently staked, and revenue from applications in the first quarter of 2025 reached $1.2 billion, the highest figure in a year. These trends, combined with positive flows on the blockchain and ecosystem expansion, position Solana as a leader if altcoin momentum returns. The Ichimoku Cloud chart for Solana currently reflects market uncertainty with a slight bearish tilt. Price action is fluctuating within the green cloud, indicating consolidation and a lack of clear direction.
The blue Tenkan-sen line (conversion line) is below the red Kijun-sen line (base line), indicating short-term weakness. The Chikou Span (green lagging line) is entangled in recent price actions, reinforcing a neutral-bearish bias.
The cloud ahead is changing to red and looks flat, indicating potential resistance and low momentum unless a strong breakout occurs.
The negative trend of SOL BBTrend persists, with bearish momentum holding below -4.
BBTrend for Solana currently stands at -4.31, marking the third consecutive day in the negative zone.
In the last few hours, the indicator has remained stable at around -4, indicating persistent bearish pressure in the short term. BBTrend (Bollinger Band Trend) measures the strength and direction of price movement relative to the width of the Bollinger Bands.
Values above 0 typically indicate bullish momentum, while values below 0 signal bearish momentum. A BBTrend of -4.31 reflects strong downward pressure and limited upward volatility expansion.
If this trend continues, it could indicate further consolidation or even deeper declines unless a sharp reversal breaks the pattern.
The formation of a 'death cross' could lower SOL to $141 if support at $160 does not hold.
The EMA lines for Solana are converging and may soon form a death cross, a bearish technical signal when the short-term EMA crosses below the long-term EMA. If this occurs, the price of SOL may test the support level at $160.
A breakout below this level could lower the price to $153.99, and if the bearish momentum accelerates, Solana could drop further to $141. On the other hand, if Solana regains bullish momentum, the first resistance to watch is at $176.77.
A successful breakout above this level could open the way for further growth to the $184.88 zone.#BinanceSquare #Write2Earn #crypto #trading #Binance $SOL