- Solana is trading near a key support level around $160, and a decisive close below it could trigger a sharp drop toward $141.
- Bearish momentum is rising, with technical indicators and market sentiment both pointing to a potential double-digit decline.
Solana (SOL) is showing signs of weakness as it trades near a crucial support level, flashing bearish signals that could lead to a sharp decline. The token was priced around $165.40 on Monday, slipping closer to its 200-day Exponential Moving Average (EMA) at $162.42. If SOL closes below this mark, analysts warn it could trigger a significant drop.
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Bearish Indicators Mount Against Solana
Technical indicators are painting a grim picture for SOL. After being rejected near the $184.13 resistance level on May 14, Solana dropped nearly 10% before bouncing back slightly. However, that recovery appears fragile. The token now hovers just above a key confluence zone around $160, where the 200-day EMA, daily support level, and ascending trendline intersect. A breakdown below this zone could confirm a bearish trend.
Momentum indicators are also shifting against SOL. The Relative Strength Index (RSI) reads 54 and is heading toward the neutral 50 level. A dip below 50 could accelerate bearish momentum. Additionally, the Moving Average Convergence Divergence (MACD) indicator is on the verge of a bearish crossover—a technical signal that often precedes further declines.
If SOL closes below the $160 support on a daily timeframe, analysts expect the price could fall as much as 14.6% from current levels, targeting the May 6 low near $141.41.
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Market Sentiment Confirms the Bearish Outlook
Adding to the pressure, market sentiment has shifted decidedly negative. According to Coinglass data, Solana’s long-to-short ratio has dropped to 0.85—its lowest point in over a month. A ratio below 1 suggests that more traders are betting on a price decline, reinforcing the bearish narrative.
What Could Change the Trend?
Despite the negative outlook, there is still a chance for recovery. If Solana can hold above the $160 support level, it may bounce back and test the $184.13 resistance once again. But with current momentum indicators leaning bearish and short positions stacking up, the odds favor a deeper correction.
Solana’s price is at a tipping point, and the next few trading sessions will be critical in determining whether the token can stabilize or face a double-digit crash.
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