Solana (SOL) has been struggling to maintain its bullish momentum recently, with the price finding it difficult to secure the $148 support level. Despite a recent 11% increase over the last four days, the altcoin has faced significant resistance around the $148 mark, leaving its chances of breaking the $150 level uncertain. This ongoing struggle signals a potential reversal in Solana’s price action, and key technical indicators are pointing toward possible further declines in the coming days.

Solana’s Market Struggles

Currently trading around $142, Solana’s market sentiment has become increasingly mixed. Despite positive developments such as the filing of a Solana spot ETF by Fidelity with the CBOE, which initially fueled some optimism, the underlying network activity hasn’t mirrored the hype. One key metric indicating this is the Network Value to Transactions (NVT) Ratio, which recently hit a five-month high. A rising NVT ratio suggests that while Solana is gaining traction in terms of surface-level market support, this enthusiasm is not translating into meaningful network adoption or increased transaction activity.

This disparity between price growth and network activity raises concerns about Solana’s long-term stability. Although the ETF filing is a positive sign for the altcoin, it has yet to result in a corresponding increase in real network engagement, which is critical for sustained price appreciation.

The Looming Death Cross

The primary concern for Solana investors now is the approaching Death Cross, a bearish technical signal. This pattern occurs when the 200-day Exponential Moving Average (EMA) crosses below the 50-day EMA, which could indicate a trend reversal from bullish to bearish. Currently, the two moving averages are converging, signaling that the Death Cross could be confirmed in the coming days. This would mark the end of a 16-month-long bullish trend, often referred to as a Golden Cross, and could lead to a significant price downturn for Solana.

A confirmed Death Cross would likely exacerbate the current bearish sentiment surrounding Solana. This technical indicator has historically preceded declines in price, and its formation could signal the start of a broader market correction.

Resistance at $148

Despite Solana’s recent rally, which saw its price reach up to $148, the altcoin has struggled to maintain support at this level. The failure to break above this critical resistance point indicates that there is insufficient buying pressure to push the price higher, despite recent gains. For the short term, this resistance is expected to continue to limit Solana’s upward movement.

If the bearish trend continues, Solana’s price may soon face a pullback, with the next support level lying at $135. If SOL fails to hold above this level, it could experience further declines towards the $125 mark. Such a decline would erase much of the recent gains and reinforce the negative market outlook for the altcoin.

Potential for a Short-Term Reversal

While the technical outlook appears increasingly bearish, there is still a chance that Solana could regain momentum if broader market conditions improve. If Solana can break through the $148 resistance level and secure support above it, there is potential for a recovery. A move above $148 could open the door for SOL to test the next resistance level around $161, potentially invalidating the bearish scenario and paving the way for a more sustained rally.

Conclusion

Solana is at a critical juncture, with technical indicators signaling potential downside risks. The looming Death Cross, combined with resistance at $148 and weaker network fundamentals, suggests that Solana may be heading for a reversal. If the price breaks below key support levels, SOL could experience a sharp pullback. However, if broader market sentiment improves and Solana can break above $148, it could fuel a recovery, with the possibility of reaching $161. Traders should remain cautious and monitor these key levels closely for signs of further price action.