Solana Struggles to Break Key Resistance as Market Fears Death Cross

Solana has been facing a tough time trying to surpass the crucial $183 resistance level, with its price now hovering around $150 after a recent pullback.

The market is grappling with the looming threat of a Death Cross, signaling potential downward pressure ahead for Solana.

Experiencing its first Death Cross since October 2023, Solana has seen a significant shift in momentum, marking the end of a 17-month streak of positive Golden Cross formations. The bearish implications of the Death Cross are evident as the 200-day EMA has crossed below the 50-day EMA, indicating a downward trend and possible further losses.

The presence of the Death Cross raises alarms about Solana's recovery prospects and could lead to increased selling activity, pushing the price lower. With sellers gaining control, there is a real possibility of a continued decline in Solana's value.

On top of technical challenges, the macro outlook for Solana is also dimming, as a decrease in new addresses interacting with the network suggests waning investor interest. This lack of fresh capital injection could hamper Solana's growth potential and result in a stagnant market.

As Solana struggles to break above $183 and hovers around $150, the odds of a sustained upward move look slim. Falling below the critical $131 support level could pave the way for further declines, with a potential drop to $120 in the short term.

To reverse this bearish trend, Solana must capitalize on broader market momentum and breach the $161 barrier, indicating renewed strength. Converting this resistance into support could pave the way for a breakout above $183 and a shift in the current downtrend.