#Solana (sol) Price Forecast
The derivative data signals a loss of bullish interest as traders anticipate further decline.
Solana prolongs the triangle pattern breakdown rally, nearing the $140 support zone.
The technical outlook suggests an extended correction as bearish momentum increases.
Solana (SOL) edges higher by 2% at press time on Friday as it avoids a drop to the $140 support zone. However, the Solana price trend is approaching its second consecutive bearish week close, following a near 6% drop on Thursday. With the bearish trend, derivatives market sentiment aligns with the technical outlook, anticipating a steeper correction ahead.
Solana nears crucial support as selling pressure grows :-
Solana has dropped over 20% from its 30-day high of $187.71 set on May 23, as it failed to close above the high supply zone near $180. In addition, the multi-month resistance trendline prolongs the declining trend, with peaks on January 18, May 14, May 23, and May 27.
Notably, the bearish reversal on May 28, resulting in a 2.55% drop, closed below a short-term support trendline that converged with the overhead trendline, completing a triangle pattern. This marked a fallout from a triangle pattern that prolongs Solana’s downfall.
The recent over 5% crash on Thursday flips the trend direction to bearish as Solana closes below the Supertrend Indicator baseline. The flip triggers a sell signal and initiates a bearish trendline at $171, close to the previously mentioned resistance trendline.
Nearing the $140 support zone, the Relative Strength Index (RSI) at 37 shows an increased possibility of another breakdown in Solana. Compared to the previous dip towards the $140 zone on May 4, the RSI has declined significantly in value, suggesting a substantial increase in bearish momentum.
In addition, the Moving Average Convergence/Divergence (MACD) indicator dips below the centre line with a surge in red histogram bars in the negative territory, signaling a bearish trend in motion.
A potential drop in Solana under $140 could fuel the correction phase towards the $105 level, the year-to-date lowest closing price.
On the contrary, if Solana extends the intraday recovery, it could face immediate resistance at the 200-day Exponential Moving Average (EMA) at $162.
