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Solana (SOL) price has dropped 20% in the past seven days, bringing its market capitalization down to $85 billion. Technical indicators such as Ichimoku Cloud and DMI show strong bearish momentum, with SOL trading below key levels and facing heavy selling pressure.
If the current downtrend continues, SOL risks testing support levels at $159 and $147, with a drop to $133 likely, marking a 22.6% correction. However, a recovery could help SOL challenge resistance at $183 and if broken, target a recovery to $203, providing hope for a rebound in upside momentum.
Solana: Ichimoku Cloud Confirms Discount Structure
Solana’s Ichimoku Cloud chart reveals a bearish outlook. Its price is trading below the cloud (Kumo), signaling strong bearish momentum. This cloud is red and expanding, indicating a growing downtrend and resistance ahead.
Furthermore, both the conversion line (blue) and the baseline (red) are decreasing, with the conversion line below the baseline, reinforcing the bearish structure. This arrangement emphasizes persistent selling pressure with no immediate signs of a reversal.
Furthermore, the lagging span (green) is below the price and the cloud, further confirming the downtrend. On the contrary, to be able to recover, SOL price needs to break through the cloud.
SOL’s Downtrend Still Strong
SOL’s DMI chart shows ADX at 38.4, indicating a strong trend. ADX (Average Directional Index) measures the strength of a trend without indicating its direction.
Values above 25 typically indicate a strong trend, and when ADX exceeds 40, it reflects very strong trend strength, regardless of whether the trend is bullish or bearish.
Directional indicators further emphasize the bearish pressure on SOL. The positive index (+DI) has dropped sharply from 20.5 to 11.3, signaling a significant weakening of the upward momentum. Meanwhile, the negative directional index (-DI) climbed from 26 to 38.3, emphasizing the increased dominance of the bearish trend.
These indicators combined confirm that SOL is in a downtrend, with a strong ADX suggesting the downtrend is unlikely to reverse in the short term. Unless +DI shows signs of recovery or -DI declines, SOL price may continue to be under pressure in the short term.
SOL Price Prediction: Could Solana Drop Below 140 USD In January?
If the current downtrend persists, Solana price could test the next support at $159. If this level fails to hold, the price could fall further to $147, with a continued strong downtrend possibly pushing it to $133, representing a 22.6% correction from current levels.
Conversely, if SOL price can restore upward momentum, it could challenge the resistance at $183. Breaking this level could pave the way for a recovery towards $203, marking a significant recovery.
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