Solana (SOL) has triggered a death cross, as the 50-period moving average dips below the 200-period MA on the 3-hour chart.
This classic bearish signal indicates that downward momentum could persist amid the broader market downturn, putting SOL under increased selling pressure.
Solana is currently trading at $125.42, down 12% for the week, according to CoinGecko. The drop mirrors broader crypto market weakness, as major tokens continue to struggle amid persistent negative sentiment despite occasional short-lived rallies.
Notably, the death cross signals that sellers are in control, often triggering extended downward pressure that can last for weeks.
For Solana, this bearish pattern, compounded by weakness across the broader crypto market, illustrates significant challenges ahead, particularly for short-term traders chasing quick gains.
Nevertheless, all hope isn’t lost. Renowned analyst Ali Martinez identifies a critical inflection point for Solana based on a decisive close above $129. Clearing this resistance could flip SOL’s trend bullish and ignite a recovery, especially as the network just recorded a historic $804 million in stablecoin inflows, signaling renewed capital and growing confidence.
Source: Ali MartinezTherefore, a sustained break above $129 could reignite buying interest and signal a shift in momentum. However, failure to defend current support may send SOL toward lower levels, particularly as a draft U.S. Senate bill poised to reshape crypto regulation seeks to place major assets such as Solana, XRP, and Dogecoin on equal regulatory footing with Bitcoin and Ethereum.
What next? Solana’s death cross underscores mounting short-term bearish pressure, mirroring broader crypto-market weakness. However, as Ali Martinez points out, a decisive close above $129 could mark a turning point, potentially shifting SOL’s near-term trend and reviving bullish momentum.
Source: https://zycrypto.com/solana-hits-danger-zone-129-breakout-could-flip-the-market-script/
