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After weeks of intense selling pressure, Solana is beginning to show signs of life once more as bulls try to buck the trend and keep a death cross from forming on the daily chart. The asset has now recovered nearly 10% from its recent lows, rising back toward $169 after falling below the $160 mark earlier this month.
Moving average plummets
This comeback comes after a period of severe correction that started in mid-October, when Solana's price fell through multiple significant moving averages after losing support at $200. The token was on the verge of a structural breakdown at its worst, having dropped more than 25% from its prior local highs. Nonetheless, the most recent increase in purchasing activity and positive sentiment on the larger cryptocurrency market point to a possible reversal or, at the very least, a halt to the decline.
At $179, SOL is currently trading slightly below the 50-day moving average, and at $185, it is still below the 200-day EMA. In order to prevent a death cross — which is a bearish signal that occurs when the 50-day average drops below the 200-day — a successful breakout above these levels would be essential. Such a cross on Solana's chart has typically resulted in longer consolidations or more severe declines.
The RSI has recovered to about 39, giving an early indication that buyers' momentum is returning. Additionally, trading volume has slightly increased, suggesting that both institutional and retail traders are once again participating. The long-term moving averages and prior breakdown levels converge at $180-$185, which is the next significant resistance. A retest of $200 could be possible if bulls are able to maintain pressure and recover this range.
This would effectively invalidate the death cross risk and change sentiment toward cautious optimism. However, selling pressure would probably resurface and bearish dominance would be confirmed if it failed to hold above $160.
For the time being, Solana's resilience suggests a possible recovery phase; however, whether this is the beginning of a larger comeback or merely another fleeting bounce will depend on its capacity to sustain momentum through these resistance zones.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team