Death cross threatens to end Solana 's 11-month bull chain

Solana (SOL) has recently failed to break above the resistance at $138, which could have sparked a new bull run for SOL. Despite its strong performance over the past year, market sentiment has changed, and the $120 support level may not hold for long.

Solana price is currently facing tight control as it fluctuates near key levels that could change its future direction.

Solana faces new dangers

Solana is on the verge of forming a death cross, a bearish technical pattern where the 200-day Exponential Moving Average (EMA) crosses below the 50-day EMA. If this occurs, it would signal a potential end to the 11-month bull run that began in October 2023. The appearance of the death cross has raised concerns for investors who have been bullish on Solana for nearly a year. A breakdown in market structure could erase the value that SOL has gained over this period.

While the macro outlook is bearish due to the potential death cross, the Moving Average Convergence Divergence (MACD) indicator paints a more nuanced micro picture. In the short-term timeframe, the MACD suggests that bearish momentum may be waning, implying a potential recovery for Solana. The indicator has shown signs of a potential recovery near the $124 support level, providing a glimmer of hope for investors looking for a reversal.

If Solana can recover from $124 as it did in early September, it could prevent further losses. Signals from the MACD suggest that while the long-term outlook may be uncertain, there is room for optimism in the short term.

SOL Price Prediction : Finding a Way Out

Currently trading at $130, Solana is looking at a potential bounce from the $124 support level, similar to its price action earlier this month. A drop below this level in the near future is unlikely, and even if it does, Solana still has a significant safety net at the $120 support level.

Solana has been consolidating above $120 since March, making $138 a key resistance level at present. A break above this resistance level would indicate that SOL could continue its uptrend despite recent bearish concerns.

But if the death cross occurs, Solana could face strong selling pressure, pushing its price below $120. This would invalidate the bullish thesis and could lead to significant losses.

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