Solana Plummets 38% in a Month, Faces Strong Bearish Momentum

Solana (SOL) has recently experienced a significant decline, dropping below $120 for the first time since February 2024. This drop represents a 38% decrease over the past month, indicating a strong bearish momentum. The cryptocurrency is now facing critical support levels, and any potential recovery would need to overcome key resistance zones to signal a shift in momentum.

The Ichimoku Cloud analysis for Solana shows that the price is currently trading below both the blue Tenkan-sen (conversion line) and the red Kijun-sen (base line), indicating a bearish short-term trend. The price recently bounced from a local low but has not yet reclaimed these key resistance levels. Additionally, the Ichimoku cloud (Kumo) ahead is red, reflecting bearish sentiment in the market. The cloud itself is positioned well above the current price, suggesting that even if SOL experiences a short-term recovery, it will likely face strong resistance near the $130 – $135 region.

The positioning of the Tenkan-sen below the Kijun-sen further supports the bearish outlook, as this crossover typically signals downward momentum. For any signs of a trend reversal, SOL would need to break above both of these lines and ideally enter the cloud, which would indicate a potential transition to a neutral phase. Until then, the bearish cloud ahead and the current weak price structure suggest that any rallies may be temporary before the broader downtrend resumes.

The Directional Movement Index (DMI) chart for Solana reveals that its Average Directional Index (ADX) is currently at 33.96, a significant increase from 13.2 just two days ago. The ADX measures trend strength, and a reading above 25 typically indicates a strong trend, while values below 20 suggest a weak or non-existent trend. Given this sharp rise, it confirms that SOL’s ongoing downtrend is gaining strength. The +DI (positive directional index) has dropped to 11.71 from 15.5 two days ago but has slightly rebounded from 8.43 yesterday. In contrast, the -DI (negative directional index) sits at 32.2, up from 25.9 two days ago, though slightly down from 35 a few hours ago.

The relative positioning of the +DI and