Rally

Solana

Movement

Flash

<a href="https://yellow.com/asset/sol" rel="noopener noreferrer nofollow">Solana</a>'s impressive 14.29 per cent gain over the past month shows signs of weakening. Market analysts are closely monitoring technical indicators that <a href="https://beincrypto.com/solana-sol-price-mixed-signals/" rel="noopener noreferrer nofollow">suggest</a> diminishing momentum in one of crypto's leading Layer 1 protocols.
The asset's BBTrend indicator currently stands at 4.73, maintaining its positive trajectory since October 12. This figure, while encouraging for bulls, represents a significant decline from peak readings of 8 to 9 observed in late October. A brief negative reading on October 29 has particularly caught traders' attention.
The recent announcement of VanEck's institutional staking service has failed to provide sustained upward pressure. Market technicians note that current price action reflects hesitancy among major players.
"The current BBTrend values, while still positive, suggest a notable cooling of buying pressure," says a senior crypto analyst at a leading trading desk. The indicator, which measures price strength against Bollinger Bands, typically signals sustained upward momentum when maintaining elevated levels.
More concerning for Solana bulls is the current ADX reading of 12.3. The figure indicates an unusually weak trend strength, with the asset's Directional Movement Index revealing slightly bearish undertones. The D+ reading of 19.6 versus a D- of 22.4 points to mounting selling pressure.
Short-term exponential moving averages have begun to curve downward, though they remain above longer-term averages. Technical analysts warn that any further deterioration could trigger a "death cross" - a historically bearish signal that often precedes significant downturns.
Price support levels at $165 and $158.9 mark crucial defensive positions, representing a potential 9 per cent drawdown from current levels. However, bulls maintain that a break above $182 could catalyse a push toward $194, levels not seen since July.
The short-term outlook hinges on whether current support levels hold. A senior market maker notes: "The next few trading sessions will be critical in determining whether Solana can maintain its structural integrity or succumb to mounting bearish pressure."

Solana's Rally Loses Steam as Technical Indicators Flash Warning Signs

Yellow News

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