Solana (SOL) value accomplished a “dying cross” on the one-day chart on March 12, because the altcoin consolidated close to its long-term help stage at $125.
This might doubtlessly speed up the SOL value sell-off within the close to time period for a drop under $100 for the primary time since February 2024.
Solana’s 1-day chart. Supply: Cointelegraph/TradingView
A dying cross happens when a bearish crossover happens between the 50-day and 200-day easy shifting averages (SMAs), with the long-term indicator above the short-term indicator.
Final month, the 50-day and 200-day exponential shifting averages (EMAs) triggered a dying cross on Solana’s one-day chart, after which costs dropped 17%, from $137 to $122.
Whereas the SMA and EMA dying crosses carry comparable implications, the EMA triggers the dying cross quicker because it responds extra shortly to cost modifications. A double dying cross from the SMA and EMA will probably enhance the potential of a correction.
Traditionally, the percentages are impartial for Solana. Since its inception, SOL’s value has witnessed a dying cross thrice (together with 2025) when costs have been on a 90-day or larger downtrend.
The primary dying cross in 2022 triggered a 90% collapse, however the FTX’s fiasco escalated its severity. The second dying cross occurred in September 2024, however it reversed inside a month, resulting in the Trump rally.
Related: 3 reasons why Ethereum can outperform its rivals after crashing to 17-month lows
But, the present construction and sentiment mirror the 2022 dying cross after we examine market situations. On each events, a brand new all-time excessive preceded the downtrend, which led to the dying cross.
As Cointelegraph reported, Solana’s income dropped 93% since January, dropping from $238 million to $32 million. This means a present lack of exercise on Solana’s community after the top of the memecoin frenzy.
Can Solana merchants defend $125?
Based mostly on its technicals, Solana stays in a tough spot when evaluating earlier dying cross returns and collective market sentiment.
Solana should maintain help between $125 and $110 for a bullish reversal. Since March 2024, SOL costs have rebounded six instances after testing the help vary, closing above $125 on every weekly retest.
Solana 1-week chart. Supply: Cointelegraph/TradingView
A weekly shut under $125 will sign market weak point, doubtlessly rising the probability of a drop under $100. The fast value goal after $110 is round $80 for Solana, which is a big 30% correction. The downtrend goal carries confluence with the weekly 0.5 Fibonacci retracement line.
Solana bullish divergences on the 1-day and 4-hour chart. Supply: Cointelegraph/TradingView
Nevertheless, the bulls will pin their hopes on a bullish divergence between the worth and relative power index (RSI) on the 1-day and 4-hour charts.
If Solana manages to keep away from one other decrease low, the divergences will stay legitimate, which may push costs larger above $125, enabling Solana to keep away from a drop under $100 and probably set up a backside at $112.
Related: Will Bitcoin price reclaim $95K before the end of March?
This text doesn't include funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a call.
