Required containers
- Solana (SOL) has fallen below the 50-day Exponential Moving Average (EMA), indicating an increase in bearish momentum.
- The MACD has reversed, while the Relative Strength Index (RSI) has dropped below the neutral level.
- Important support is at $67.50, the level that triggered the retracement in late June.
Solana (SOL) remained under pressure on Tuesday, extending its recent weakness as the indicator dipped below the 50-day Exponential Moving Average (EMA), a technical development that indicates strong growth.
At the time of writing, SOL was trading below $75.00, remaining below the 50-day EMA at $76.63 and the 200-day EMA at $97.65. Failure to recover from these high levels indicates that sellers continue to dominate the market.
Momentum signals increase
Technical indicators show that the momentum is slowing down. The Moving Average Convergence Divergence (MACD) has crossed below its line, forming new bearish histogram bars that indicate bearish support.
Meanwhile, the Relative Strength Index (RSI) has dropped to 46, falling below the neutral 50 level. This indicates that the buying pressure is decreasing as sellers regain control of the market.
Together, these indicators reinforce the possibility of further downside unless market sentiment improves.
Solana’s most important support is currently around $67.50. This horizontal support in the past led to an impressive rebound in late June and could attract buyers again if the sell-off accelerates.
A definite break below $67.50 would increase the risk of a deeper correction and would encourage additional bearish positions.
For Solana to change its short-term outlook, buyers need to retrace the 50-day EMA near $76.63, which is now resisting immediately.
A sustained break above this level could open the door to the 200-day EMA around $97.65, where a major sell-off is expected to appear.
Solana remains a technical risk after falling below its 50-day EMA, with bullish signals suggesting that sellers will remain in control. As long as SOL is trading below its main trend, the upside risk continues.
Traders will be keeping an eye on the $67.50 support level, while meaningful recovery will depend on the 50-day EMA recovery signal and regain strength.
