 ▲ Solana (SOL) |
The bearish momentum of Solana (SOL) has become clear.
According to BeInCrypto, a media outlet specializing in cryptocurrency, demand for Solana has increased rapidly, soaring to $187 as of May 20 (local time). However, after the bullish force broke through the horizontal channel formed between April 13 and May 15, it turned downward and fell to the $150 level.
Solana is currently trading below the 20-day exponential moving average (EMA). This suggests reduced buying pressure and increased selling of assets.
In the futures market, we can also see a decline in speculative sentiment due to the downward trend in Solana prices. Open interest in Solana futures has decreased by 15% this month. This means that the number of traders closing positions without new contracts has increased. At the same time, it also means a shift from bullish sentiment to bearish sentiment.
Solana Moving Average Convergence Divergence (MACD) was confirmed to have fallen below the signal line. This is considered a bearish signal and signifies a sharp increase in selling pressure from market participants.
In addition to this, the bearish turning trend can also be confirmed with Solana’s weighted sentiment. As of the 11th, the weighted sentiment recorded -0.32, indicating that a negative sentiment had been formed.
Meanwhile, the media reported that if Solana's selling pressure and weak momentum continue, it could fall further to $135.
