Solana (SOL) Price Rally Threatened by Waning Bullish Signals

SOL BBTrend. Source: TradingView

The BBTrend metric measures the strength and direction of the trend using Bollinger Bands, which track volatility. While the current BBTrend value remains positive, it has dropped from 9.01 over the past few days, suggesting that Solana’s bullish momentum might be waning.

This decline could imply that the current trend is weakening, meaning SOL price may face increased resistance and possibly a shift towards a more neutral or sideways movement.

Solana Current Uptrend Could Be Losing Momentum

The SOL DMI chart reveals that the current uptrend strength is at 34, as indicated by the yellow line, which represents the Average Directional Index (ADX). ADX is a key component of the Directional Movement Index (DMI) and is used to gauge the strength of a trend, regardless of its direction.

The ADX itself is a measure that helps traders understand how strong the current price movement is. A reading above 20 generally indicates a strong trend, and with an ADX of 34, Solana is currently in a strong uptrend, suggesting there is still notable momentum behind recent price action.

In Solana’s case, the reading of 34 suggests that the uptrend is substantial, but traders need to keep an eye on whether ADX continues rising or starts to plateau, as this can hint at changes in trend strength.

SOL DMI. Source: TradingView.

Additionally, the DMI chart reveals that the positive directional indicator (D+) stands at 22.3, while the negative directional indicator (D-) is at 14.2. The higher D+ suggests buyers still have control of the market. However, just two days ago, D+ was at 36.7, and D- was at 9.15, indicating the gap between them is shrinking, which could point to weakening buyer momentum.

The narrowing gap suggests weakening bullish momentum and increasing selling pressure. If this trend persists, it could signal a shift toward a more indecisive market, where bulls lose dominance. This may lead to more volatile price action or consolidation.

SOL Price Prediction: A 12% Correction Or a 27,8% Price Surge?

SOL’s EMA lines remain bullish, with short-term exponential moving averages (EMAs) positioned above the long-term EMAs. This arrangement suggests that the price trend is currently in an upward phase, with recent price movements exceeding the longer-term average.

However, the short-term EMAs are starting to trend downward, indicating a potential loss of momentum. If these shorter-term lines cross below the longer-term EMAs, it could be a bearish crossover, signaling the beginning of a downtrend. Traders typically view this “death cross” as an early warning that the prevailing bullish trend is weakening.