Solana is facing fresh bearish pressure as the price continues to decline and the altcoin approaches a key support level that has not been tested in over seven months.
The continued decline reflects deepening market weakness, and technical indicators suggest that further losses are likely unless the situation changes quickly.
sponsored
Solana investors face huge losses
Solana’s exponential moving average indicates the possibility of a death cross forming.
This pattern occurs when the short-term EMA falls below the long-term EMA, often marking the beginning of a long-term downtrend. Past action suggests Solana may be repeating the earlier market cycle seen in the first and second quarters of this year.
During this period, SOL fell 59% from its local highs before the death cross fully materialized.
A similar setup today would send Solana to $98, further widening its 47% decline from its current domestic high.
This situation highlights the weakening of market sentiment and heightens concerns about continued downside risks.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
sponsored
Macro momentum also appears fragile. Solana’s net realized gain/loss margin has fallen to its lowest level since June 2023, indicating that holders are facing significant realized losses following the recent decline.
This indicator often reflects changes in broad sentiment as investors reassess risk during rapid market declines.
However, there are some notable signs of hope. Historically, a reversal occurs when the net realized profit/loss ratio falls below 0.1.
This pattern also occurred in March, April, and September 2023, each time marking the beginning of a recovery.
sponsored
If this trend repeats, Solana could see a significant rebound as realized losses saturate and selling pressure stabilizes.
SOL price is vulnerable
Solana is trading at $127, holding just above the $123 support level. Altcoins are waiting for broader market stability and renewed investor confidence to fuel a recovery.
sponsored
However, the indicators above suggest that risks are still skewed to the downside.
If Solana moves closer to confirming the death cross, the price could continue to fall below $123, drop to $105, and even $100.
Such a move would represent a 21.8% correction from current levels, and would revisit the price range last seen in March.
If realized losses stabilize and investor sentiment improves, Solana could rebound from $123 and attempt a rally to $136.
A break above this barrier would open the way to $157, invalidating the bearish theory and reinstating a more bullish structure.
