Solana stabilizes above $120, but analysts warn of potential collapse
The price of Solana's stock has risen above the $120 level but remains 60% lower than its all-time high.
The real economic value of Solana (REV) has decreased by 90% due to the decline in meme coin trading.
The formation of a double top and increasing network inefficiency indicates a bearish divergence.
Solana shows signs of recovery beyond $120 amidst the volatility of the cryptocurrency market. Despite a 14% drop over the past week, Solana rose by 5.98% on March 11, temporarily ending a downward wave.
However, analysts warn that this recovery may be short-lived, as declining revenues and technical sell signals point to further downside risks.
Sell Signal for Solana
On the daily chart, Solana shows a slight decline of 1.14% during the day. The recent price movement appears to represent a retest of the broken supply and demand zone at $130.
The asset is still approximately 60% lower than its all-time high of $295, with a 'death cross' forming between the 50 and 200 exponential moving average lines. Additionally, the 100 and 200 exponential moving average lines are approaching a bearish crossover, indicating a potential slowdown.
