Solana (SOL) Faces Intense Selling Pressure

Solana (SOL) has faced intense selling pressure, recently dropping below $120 – its lowest level since February 2024. It has declined more than 38% over the past 30 days, reinforcing its bearish momentum.

With sellers firmly in control, SOL now faces a critical test of support levels. Any potential recovery would need to break through key resistance zones to signal a shift in momentum.

Solana Ichimoku Cloud Shows a Strong Bearish Setup

The Solana Ichimoku Cloud indicates that the price is currently trading below both the blue Tenkan-sen (conversion line) and the red Kijun-sen (base line), indicating a continued bearish trend.

Although the price recently bounced from a local low, it has not yet reclaimed key resistance levels. The Ichimoku cloud (Kumo) ahead is red, reflecting overall bearish market sentiment. The positioning of the Tenkan-sen below the Kijun-sen further supports this bearish outlook, as this crossover typically signals downward momentum.

For any signs of a trend reversal, SOL must break above both of these lines and ideally enter the cloud, indicating a potential transition to a neutral phase. Until then, the bearish cloud ahead and current weak price structure suggest that any rallies may be temporary.

SOL DMI Shows Sellers Are Still In Control

The Solana Directional Movement Index (DMI) chart shows that its Average Directional Index (ADX) is currently at 33.96, significantly up from 13.2 just two days ago. This rise confirms that SOL’s ongoing downtrend is gaining strength.

The +DI (positive directional index) has dropped to 11.71 but has slightly rebounded from 8.43, while the -DI (negative directional index) sits at 32.2. The positioning of +DI and -DI lines shows that sellers are still in control, with the -DI significantly higher than the +DI.

The slight dip in -DI could indicate some short-term relief, but the ADX climbing quickly reinforces the prevailing downtrend. The minor bounce in +DI suggests some buying pressure, but not enough to shift momentum in favor of bulls.

Will Solana Fall Below $110?

Solana’s Exponential Moving Average (EMA) lines continue to show a bearish trend, with short-term EMAs positioned below long-term EMAs. This alignment suggests that downward momentum remains dominant, despite an attempted price recovery.

If this rebound gains strength, SOL could face resistance at $130 and $135—key levels that must be cleared for a potential trend reversal. A significant breakout above these levels could lead SOL toward $152.9, possibly paving the way for a rally to $179.85, the last noted price on March 2 when SOL was added to the US crypto strategic reserve.

However, if the bearish structure remains intact, selling pressure could resume, leading SOL to retest the support levels at $115 and $112, which have previously acted as price floors. A failure to hold these supports could propel SOL below $110 for the first time since February 2024.

Given the current positioning of the EMAs, the downtrend remains in control unless Solana reclaims key resistance levels and establishes a bullish crossover, signaling a shift in market sentiment.