Solana (SOL) continues to face pressure with bearish indicators.

Solana (SOL) is under pressure after failing to maintain its recent upward momentum and is currently trading lower, following the recent pattern of Bitcoin and Ethereum.

Although it surged earlier this week, SOL has lost more than 2% of its value compared to 24 hours ago.

The technical indicators are showing increasingly clear bearish signals, with sellers regaining control in the short term. Traders are monitoring key support and resistance levels as SOL is struggling to regain upward momentum.

Ichimoku Cloud for SOL indicates setup is shifting towards a bearish trend

Solana (SOL) is currently trading below the Ichimoku Cloud, indicating a short-term bearish trend. The price has fallen below both the Tenkan-sen (blue line) and the Kijun-sen (red line), suggesting that the downward momentum is still ongoing.

The cloud in front is thin and flat, indicating weak trend strength and the possibility of the price continuing to move sideways or decrease unless buyers step in early.

Ichimoku Cloud SOL | Source: TradingViewAdditionally, the Lagging Span (green line) is positioned below the price and the cloud, further reinforcing the bearish sentiment. The price is oscillating near the lower boundary of the cloud, which could act as an immediate resistance level if SOL attempts to recover.

If sellers maintain control, SOL may face further downward pressure, while the market needs to break out above the cloud to suggest a potential trend reversal.

Solana DMI shows sellers regaining control after a brief price surge

The DMI chart of Solana shows that the ADX has decreased from 22.18 to 15.87 yesterday, indicating that the trend is weakening.

The Average Directional Index (ADX) measures the strength of a trend, with values above 25 indicating a strong trend and values below 20 indicating weak or consolidating price action.

! SOL DMI | Source: TradingView At the same time, +DI plummeted from 28.62 to 16.85, indicating that the bullish momentum was lost. Meanwhile, -DI rose to 22.53 from 14.88, with downward pressure on prices.

With -DI currently above +DI and ADX below 20, Solana may still face selling pressure or enter a limited range oscillation phase as sellers take control in the short term.

Solana could drop to $112 if the downtrend strengthens

SOL follows a similar pattern to Bitcoin and Ethereum, rising sharply from March 19 to March 20 before reversing and declining by more than 2% on the day.

The price is currently approaching the important support level around $120, and a break below this level could lead to a deeper decline to $112 or even below $110.

Despite recent adjustments, according to Charles Wayn, the founder of the decentralized Web3 super app – Galxe, the success of Solana shows that other blockchains also need a niche market to thrive.

"As Solana celebrates the launch of the first futures ETF, it has completely dismissed the doubters about the existence of the project since its launch five years ago. Although it has not become the 'Ethereum killer' as rumored, Solana has emerged as a blockchain for memecoin trading. With daily meme token trading volume peaking at 3 billion USD during the frenzy, Solana's pump.fun is the largest and highest-revenue memecoin launchpad in the market. Solana has truly found its niche in the crypto space over the past five years, and now it's time for other blockchains to find their niches."

He also pointed out Solana's success in the memecoin space:

"The success of Solana in the memecoin space demonstrates the demand for multiple Layer-1 blockchains within the crypto ecosystem. Indeed, many competitors have entered this space to challenge Solana as the retail chain, but its dominance in the meme token sector has helped SOL gain popularity among new and mainstream users. There will always be faster, cheaper, more configurable chains with more user-friendly interfaces; however, specialized Layer-1 chains focusing on a specific aspect of the industry will become more popular. Exploring a niche market will allow chains to maintain competitiveness and attract developers as well as users."

SOL Price Analysis | Source: TradingViewIf SOL regains its upward momentum, it may first target the resistance levels at $131 and $136. Recently, this altcoin has tested this resistance level twice and has failed to break through.

A stronger recovery could lead to a price increase of up to $152.9 and even $179.85, the highest price since early March.

You can check the price of SOL here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.

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Viet Cuong

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