Solana (SOL) falls through bull market trendline - is this the end?

Solana (SOL) has fallen through its bull market trendline. Is this the end of the current bull market for the highly technical layer 1 blockchain, or is there still the possibility of a recovery?

Bounce or further fall?

The $SOL price has taken quite a fall. From the new all-time high of $295, the price has plummeted 55% to touch $132 on Tuesday. Either the current bounce continues, or there is the chance that the price could fall yet further to $127, and even to what would be a potential absolute bottom at $120. 

$30 below the bull market trendline

Source: TradingView

For those twisted and tortured souls still holding $SOL, any hope of redemption might appear to be lost. Crashing through any bull market trendline should not be taken lightly, and especially when it is to the tune of a loss so far of $30 below.

In defence of the price, the very strong horizontal support at $127 is just below, and the daily Stochastic RSI is at the bottom, which is also the case for all the medium to long-term momentum indicators.

Bearish divergence now played out?

Source: TradingView

Zooming further out, and bringing in the Relative Strength Index, it can be seen that bearish divergence has been in play since March 2024, given that higher highs in the price have been matched by lower lows in the RSI. With the huge fall in price since the all-time high, it may be that the bearish divergence is now done with.

Coming momentum can bring $SOL back against $BTC

Source: TradingView

Against its Bitcoin pair (SOL/BTC) things are also looking difficult. The price has dropped out of the long-term triangle and is currently sitting on a horizontal support level just below the ascending trendline. As well as turning back up against its USD pair, the $SOL price needs to reenter the triangle and make ground against $BTC once again. The 2-week Stochastic RSI indicators are at the bottom. By turning back up, they can bring momentum to the $SOL price once again. It’s not over yet.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.