Solana price continued its strong downward trend, moving from the September high of $253 in September to the current $142. It is now hovering near its lowest level since June 27 this year. So, will the token continue falling as the death cross pattern forms? Solana price technical analysis as a death cross pattern forms The daily timeframe chart shows that the Solana price has plunged in the past few months, plunging from a high of $253, its lowest level in months. SOL price has moved below the ascending channel, confirming the bearish trend. Also, the 50-day and 200-day Exponential Moving Averages (EMA) have crossed each other, forming a death cross pattern. The Relative Strength Index (RSI) indicator has dropped to 32 and is nearing the oversold level. Also, the Average Directional Index (ADX) has jumped to 41, its highest level since November last year. Solana price has moved below the Supertrend and the Ichimoku cloud indicators, a sign that bears remain in control for now. Therefore, the token will likely continue falling as sellers target the key support level at $125, its lowest level in June 22. A move below that support level will point to more downside, potentially to $100. On the flip side a move above the resistance level at $171 will invalidate the bearish outlook, potentially to the psychological level at $200. Solana price chart | Source: TradingView SOL price drops despite strong fundamentals Solana price could continue falling in the near term despite its strong fundamentals. Data compiled by Nansen shows that the number of Solana transactions rose by almost 10% in the last 30 days to over 1.8 billion. Active addresses jumped by 19% in the same period to 63.4 million. Still, Solana’s activity has been falling since June this year, moving from over 7 million in June to about 3.15 million today. This performance is likely because of the falling Solana meme coins. Another positive catalyst for Solana price is that ETF inflows jumped to over $382 million since October 28 this year. Its inflows have soared in each market today since the launch. The Bitwise Solana ETF has over $357 million, while the Grayscale fund has $24 million. Bitwise has net assets of over $446 million. Still, Solana has had some notable bearish catalysts. For example, the total stablecoin supply has dropped to $12.9 billion from the year-to-date high of $15.4 billion. Also, the DEX volume in its protocol will be lower this month than in October. It stood at about $64 billion, down from last month’s high of $148 billion. The other bearish catalyst for the SOL is that traders have reduced their leverage following the recent liquidation event in October. The futures open interest has dropped to about $7.2 billion, down from the September high of $17 billion. The post Solana price forms death cross as SOL ETF inflows near $400m appeared first on Invezz
