For the time being at least, investors in Solana can exhale with relief as the possibility of a death cross signal has been avoided. Based on the given chart, it appeared that the 200-day moving average and the 50-day moving average were headed straight for each other.
Generally speaking, a death cross is a bearish signal that suggests further downside may be ahead, but luckily Solana avoided that bullet. Right when it was most needed, the price fluctuated between $140 and $145. This rebound was essential to preventing the chart from entering a death cross scenario due to the downward momentum. Solana may therefore be recovering some of its lost value as this technical signal is beginning to show signs of improvement.
A death cross frequently triggers additional sell-offs, so it is critical for SOL to maintain its position that this bounce occurs at this critical juncture. Solana now has an opportunity to level off and possibly even rise higher in the near future thanks to the bounce. In the future, two critical stages need to be closely monitored.
Tomiwabold OlajideFirstly, SOL is currently trading near the $145 level, which may serve as a temporary resistance zone. Solana could see greater upside potential if it breaks above this level. Second, another important resistance to keep an eye on is the $160 mark. The $180 range that Solana was trading in earlier this year may be attainable if it can overcome these barriers.
This price bounce gave investors a glimmer of hope as Solana just dodged a strong bearish signal that could aggravate the situation on the market in general. The risk of additional decline is diminished as long as SOL maintains current levels and advances toward $160.
Tomiwabold Olajide
Godfrey Benjamin
Dan Burgin
U.Today Editorial Team
Vladislav Sopov