Will Solana Continue Going Down? | Credit: Hameem Sarwar
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Key Takeaways
Solana remains below the midpoint of its long-term range.
Price action is currently contained within a short-term ascending parallel channel.
Has SOL reached its cycle peak, or is further downside ahead?
Solana (SOL) has struggled to regain bullish momentum after failing to hold above its long-term range.
Following a strong rally late last year, SOL has slipped back below the midpoint of its range and is showing signs of weakness.
Technical indicators are flashing bearish signals across multiple timeframes, suggesting more downside ahead.
With fading momentum, could Solana be heading for a deeper crash in the coming months?
Why Is Solana Going Down?
Solana has traded within a well-defined range of $120 to $250 since its 2021 cycle high of $260.
In December 2024, SOL briefly broke above this range, reaching a new all-time high of $295.83.
However, the rally failed to hold, and the price retraced to the lower boundary of the established range.
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Momentum indicators support this bearish prediction for Solana. The Relative Strength Index (RSI) has broken its support trend line and is now below 50.
The Moving Average Convergence/Divergence (MACD) made a bearish cross and is very close to falling into negative territory, confirming the bearish SOL prediction.
As a result, SOL is likely to keep plunging for the remainder of the year, at least until it reaches the range low.
Solana’s Short-Term Prediction
The six-hour price action indicates that the Solana price is trading within an ascending parallel channel, a sign of a corrective movement.
Therefore, the bounce since Nov. 4 likely marks a correction, rather than a bullish trend reversal to new highs.
Moreover, Solana has deviated (red icon) above the 0.382 Fibonacci retracement resistance level of $169, which is also a horizontal resistance area.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
