Solana’s Death Cross : Will It Trigger A Bigger Sell-Off ?

The crypto market is going through a phase of uncertainty, where every technical indicator is scrutinized closely. Solana, long regarded as one of the most promising projects in the sector, today finds itself at a decisive crossroads. As its price records a notable drop, a dreaded signal for analysts threatens to intensify the pressure: the death cross. This technical event, often interpreted as a bearish indicator, could influence investor behavior and trigger a new cycle of volatility. But is this signal really a harbinger of a prolonged downward trend, or could it precede an unexpected rebound?

A troubling technical signal for Solana

For several days, Solana has recorded a series of consecutive declines, reaching $120.35, its lowest level since September 2024. This drop of 23.10 % in one week occurs in a context of widespread distrust in risk assets, while the U.S. Federal Reserve seems less inclined to ease its monetary policy.

The main concern lies in the imminent formation of a death cross. This indicator manifests when the 50-day moving average falls below the 200-day moving average, a crossover that generally indicates a waning bullish momentum. Currently, Solana’s 50-day average stands at $188.71, while the 200-day average is at $184.03, indicating a convergence likely to materialize in the coming days. This signal, interpreted by many traders as a portent of a prolonged correction, adds to an already fragile market environment.

Possible scenarios for Solana

If the death cross were to be confirmed, several outcomes are possible. Some observers remind us that during the previous bearish crossover observed in September 2024, Solana initially marked a low before rebounding strongly in the following months, reaching up to $264. Such a scenario suggests that if Solana can maintain certain key support levels, particularly $109 and $88, opportunistic crypto buyers could position themselves, thus creating a base for recovery.

However, a more pessimistic scenario cannot be ruled out. If these support levels give way under selling pressure, Solana could extend its decline, amplified by a context of reduced liquidity in the market. The macroeconomic environment, marked by investor wait-and-see toward the Fed’s decisions, could also limit short-term rebound hopes. In this climate of uncertainty, Solana’s ability to maintain a stable level will largely determine the trend in the coming weeks.

The question remains open: will this death cross mark a phase of accumulation for savvy investors, or a breaking point that heralds a new downward spiral? One thing is for sure, the coming days will be decisive for Solana’s future in the crypto market.