One of the top 10 cryptocurrencies by market cap, Solana (SOL), is fast approaching a decision point. After struggling to break the $97 resistance level earlier this year, the digital asset is exchanging hands around the $65 level as of Thursday, threatening further decline below $50.
Solana showing bearish signals
According to an X post shared by crypto analyst CryptosBatman, SOL is currently trading inside a massive symmetrical wedge formation, with volatility compressing as it moves towards the apex point.
The analyst shared the following 4-hour chart, showing that SOL price is struggling below the 200 exponential moving average near $68, while the moving average convergence divergence is printing bearish divergence and losing momentum.
To explain, MACD is a momentum indicator that shows the relationship between two moving averages of an asset’s price, typically the 12-period and 26-period EMAs. Traders use it to identify trend direction and momentum shifts of the underlying asset.
Meanwhile, fellow crypto analyst Gerla opined that SOL is still in the manipulation phase. The analyst shared the following SOL daily chart, highlighting that the smart contract coin is likely to see parabolic price appreciation following the end of the manipulation phase.
Once SOL enters the distribution phase, it could potentially jump all the way up to $125, a price level it last saw earlier this year in January. However, it’s critical for SOL to reclaim the top end of the current price range around $75 before any meaningful bullish reversal.
Solana’s current depressed price action was also forecasted by seasoned crypto trader Ali Martinez. On Wednesday, the trader had emphasized that SOL is flashing a TD sell signal on the 4-hour chart, creating a highly concentrated technical price ceiling.
Will Alpenglow upgrade save SOL?
In the crypto market, typically tokens tend to show bullish momentum ahead of a major protocol upgrade. Solana’s Alpenglow upgrade, scheduled for Q2 2026, is one such upgrade that promises to uplift the digital asset’s fortunes in the medium-term.
That said, a lot will still depend on other factors such as institutional interest in the digital asset, and SOL’s technical charts. For the moment, neither of them paint a convincing picture for SOL.
On Tuesday, crypto analyst Ardi highlighted that SOL is showing a bearish double top pattern on the weekly chart. In the same vein, on May 18, Goldman Sachs disclosed that it had completely exited its position in SOL-based ETFs.
