Solana price bottom below $100? Death cross hints at 30% drop

Solana (SOL) worth 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 probably speed up the SOL worth sell-off within the close to time period for a drop beneath $100 for the primary time since February 2024.

A dying cross happens when a bearish crossover happens between the 50-day and 200-day easy transferring averages (SMAs), with the long-term indicator above the short-term indicator.

Final month, the 50-day and 200-day exponential transferring 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 related implications, the EMA triggers the dying cross sooner because it responds extra rapidly to cost adjustments. A double dying cross from the SMA and EMA will possible enhance the potential of a correction.

Traditionally, the percentages are impartial for Solana. Since its inception, SOL’s worth has witnessed a dying cross thrice (together with 2025) when costs have been on a 90-day or greater 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.

Associated: 3 explanation 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 evaluate market circumstances. 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?

Primarily based 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 occasions after testing the help vary, closing above $125 on every weekly retest.

A weekly shut beneath $125 will sign market weak point, probably rising the chance of a drop beneath $100. The speedy worth goal after $110 is round $80 for Solana, which is a major 30% correction. The downtrend goal carries confluence with the weekly 0.5 Fibonacci retracement line.

Nonetheless, the bulls will pin their hopes on a bullish divergence between the worth and relative energy 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 greater above $125, enabling Solana to keep away from a drop beneath $100 and probably set up a backside at $112.

Associated: Will Bitcoin worth reclaim $95K earlier than the top of March?

This text doesn’t comprise 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 choice.