Solana Teeters on Brink of Death Cross as $148 Resistance Holds Firm

This metric, which compares market capitalization to transaction volume, suggests that despite positive market sentiment, Solana is not experiencing corresponding growth in network adoption or engagement.

Solana ETF developments provide hope

Recent developments, including Fidelity‘s filing for a spot SOL ETF with CBOE, have provided some optimistic news for investors. However, this announcement has yet to translate into substantial on-chain activity. While institutional interest through ETF filings represents a positive signal for Solana’s mainstream acceptance, the lack of corresponding blockchain activity raises questions about the sustainability of current price levels.

Perhaps most concerning for Solana bulls is the looming technical pattern on the price chart. The 50-day and 200-day exponential moving averages (EMAs) are approaching a Death Cross formation, where the shorter-term average crosses below the longer-term one. This would mark the end of a 16-month Golden Cross period that has generally supported Solanas upward price action since early 2024.

If confirmed in the coming days, this Death Cross could trigger additional selling pressure, potentially accelerating Solanas price decline. The technical pattern historically signals a shift in momentum from bullish to bearish and often precedes extended downtrends in various markets, including cryptocurrencies.

Currently trading at approximately $142, Solana needs to overcome the stubborn $148 resistance to avoid further downside. This price level has repeatedly rejected SOL‘s attempts to move higher, creating a ceiling that limits the cryptocurrency’s ability to reclaim the $150 mark. Until this resistance is broken, Solana remains vulnerable to continued bearish pressure.