Solana (SOL) has seen a decrease in price over the past 30 days, falling 17% and losing its $100 billion market cap to currently sit at $90.6 billion. Despite this, SOL continues to attract significant user activity and transaction volume on applications like Raydium, Pumpfun, and Jito. Indicators such as BBTrend and ADX suggest a weakening downtrend, with potential signs of a recovery in momentum. Key levels at $183 support and $194.99 resistance will play a crucial role in determining whether SOL stabilizes and climbs back toward $200 or faces further downside.
BBTrend, a momentum indicator derived from Bollinger Bands, shows signs of a potential turnaround for SOL. BBTrend is currently at -0.43, its highest level since December 21, indicating a weakening bearish momentum and increasing buying pressure. While still negative, the movement toward neutral and potentially positive territory suggests a shift in market sentiment that could lead to price stabilization or an uptrend in the short term.
The Directional Movement Index (DMI) chart for SOL reveals that the Average Directional Index (ADX) has declined to 20.14, indicating a significant weakening in trend strength despite remaining in a downtrend. The D+ has also fallen, signaling a decrease in buying pressure, while the D- has risen, reflecting increased selling activity. This combination suggests that sellers currently dominate the market, although the weakening ADX implies that the bearish trend may be losing steam.
If SOL’s BBTrend turns positive again, it could confirm a full reversal of bearish sentiment and support a renewed upward price trend. The ongoing recovery in BBTrend is a positive signal for SOL, suggesting that the price could see further gains if buying momentum continues to build. In the short term, the lack of a strong trend could provide buyers with an opportunity to re-enter the market, potentially leading to price stabilization or consolidation.
Solana’s price is currently trading within a range defined by a support level at $183 and a resistance at $194.99. If the $183 support fails to hold, SOL could face additional bearish pressure and drop to the next key level at $175. On the other hand, breaking above the $194.99 resistance could open the door for further upward movement, with targets at $204 and $215 marking a potential 14% upside from current levels.
In conclusion, despite recent price declines, Solana (SOL) shows signs of potential recovery in momentum according to indicators like BBTrend and ADX. The key levels at $183 support and $194.99 resistance will be critical in determining SOL’s short-term price direction. With the ongoing recovery in BBTrend and the weakening of the bearish trend strength reflected in the ADX, SOL may stabilize or consolidate in the near term, providing opportunities for buyers to re-enter the market. The next targets for SOL would be $204 and $215 if positive momentum continues to build.
