Why Solana Price Is Falling: Analyzing the Prolonged Downtrend

- Solana's Price Falls 15% from November 22nd High - Technical Indicators Suggest Further Decline Possible [Unblock Media] Let's analyze the current situation where Solana's price has dropped 15% from its all-time high on November 22nd. The decline appears likely to continue, so let's examine this more closely using technical indicators. Firstly, considering the BBTrend indicator based on Bollinger Bands, Solana's BBTrend peaked at 2.8 on December 8th and has since dropped to 0.66. Positive values indicate upward momentum, while negative values indicate downward momentum. This indicator currently suggests that the downward trend may continue. Historical cases where the BBTrend dropped sharply after peaking often resulted in continued downward trends, implying that the current decline could negatively impact Solana's future price movement. The ADX and DMI indicators are also crucial. The current ADX is at 26.2, indicating an increase in trend strength, which suggests a very strong trend is forming. However, when the negative directional indicator (D-) dominates and the ADX is rising, historically, there's been more than a 65% probability of further decline. Hence, the current scenario points to a higher likelihood of continued downturn. The EMA (Exponential Moving Average) is giving important bearish signals as well. The recent bearish crossover of the 50-day and 200-day moving averages is traditionally considered a strong bearish signal, implying a greater short-term decline. The $215 support level, previously a significant resistance level, if breached, could potentially trigger a significant amount of psychological stop-loss selling. Overall, technical indicators suggest that a bearish trend is predominant when considering Solana's current condition and future trajectory. This downward momentum has been further reinforced by the recent 15% drop in daily transaction volume on the Solana network, reflecting weakened investor sentiment. In conclusion, for Solana's price to reverse its downward trend, additional momentum is necessary. Such momentum could come from technical improvements in the Solana project, new partnerships, or a shift in the overall market sentiment. These factors, if realized, could significantly increase the likelihood of a price uptrend for Solana.