Solana’s (SOL) price has fallen by 12% within the last seven days. This correction happened after the cryptocurrency was rejected at $145 despite attempts to invalidate a certain bearish pattern.
This rejection seems to have put SOL into more trouble, with demand nowhere to be found. In this analysis, CCN checks whether Solana’s price can reverse from this downturn. Let’s find out.
On March 3, Solana’s price reached $180, flashing signs that it could climb above $200 again. However, that move was invalidated as it experienced a decline to $116.
After that, SOL experienced a brief upswing to $145, leading to a bearish flag formation, as shown below. The bearish flag formation ensured that the altcoin failed to move higher than $145 and is now below $125, which was the expected outcome.
According to the daily chart, SOL does not seem likely to recover from this correction anytime soon. One reason for this is the position of the Supertrend indicator.
Typically, when the green line of the Supertrend is below the price, the trend is bullish. But in this case, Solana’s price is below the red line, with signs that a major resistance lies near $150.
Furthermore, the Chaikin Money Flow (CMF) reveals that SOL might continue to trend downward. The CMF gauges the level of accumulation or distribution around a cryptocurrency.
An increase in the CMF reading indicates a rise in buying volume. Conversely, when the CMF declines, it signifies rising selling pressure.
The image below shows that the CMF on the SOL/USD daily chart has dropped to -0.01. Should the rating continue to slide, Solana’s price recovery might not happen soon.
On the 4-hour chart, CCN observed that Solana’s price is confined within a symmetrical triangle. A symmetrical triangle forms when two trendlines with equal slopes converge/
A breakdown below the lower trendline signals the beginning of a bearish trend, while a breakout above the upper trendline marks the start of a bullish move. For SOL, the signs shown by the indicators above suggest that it could break below the lower trendline.
The Moving Average Convergence Divergence (MACD) also seems to agree with this thesis, especially as it has yet to be fully closed above the zero signal line. If the momentum becomes bearish, SOL’s price will likely fall to $112.15 and mark a new yearly low.
On the flip side, if Solana breaks above the upper trendline of the triangle pattern, the trend might change. In that case, SOL might climb to $155.24.
Should buying pressure increase, the short-term target could be higher, as the CMF might turn positive. In that case, Solana’s value might hit $180.90.
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.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
