Solana (SOL) price is following the path set by Bitcoin and the rest of the altcoins with red candles.
As a result, the chances of recovery decrease with each passing day, and even the Soul Bearers are losing hope.
Solana price may struggle to recover due to broader market signals. This is evident in the Moving Average Convergence Divergence (MACD) indicator. MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price.
It is used to identify potential buy or sell signals based on the intersection of these averages. Solana's MACD has been in a bearish crossover for over a month, indicating continued downward momentum in its price direction.
The indicator indicates that the selling pressure on Solana is still strong.
As a result of this extended bearish signal, SOL holders are becoming increasingly pessimistic about the coin’s short-term prospects. Many investors are adjusting their positions, anticipating further declines in Solana’s price.
Another important indicator of this shift in sentiment is the funding ratio turning negative. A negative funding ratio means that short sellers are willing to pay a premium to maintain their positions, betting on further price declines.
This is the third time the funding rate has turned negative this month, raising concerns about its gradual extent.
SOL Price Forecast: Support Broke
Solana price has only been in a downtrend over the past month and a half, dropping from $187 to $125. This decline has caused SOL to miss the 23.6% Fibonacci retracement support at $128.
The altcoin is currently hovering at the $125 support level, a level that has not been broken in the past three months. Therefore, if the price of SOL drops below it, it is likely to drop to $110.
However, a bounce could prevent further losses for SOL holders. The main resistance currently stands at $141, and turning it into support could enable a rise to $151. A break above this barrier would invalidate the bearish thesis entirely.
