Solana May Be on Verge of Dangerous Death Cross Against Bitcoin

The popular alternative cryptocurrency Solana (SOL), which has emerged as one of the hottest assets on the market in recent months, may be on the verge of a painful downtrend against its main counterpart, Bitcoin. At least, this possibility is suggested by the intersection of moving averages on the SOL/BTC price chart.

Currently, Solana is valued at 0.00158 BTC, which is equivalent to approximately $133.16. However, just at the beginning of last week, this figure was 23% lower, after Solana lost 54% since January in a steady decline against Bitcoin.

SOL’s recent strength could be linked to the launch of the first Solana ETFs in Canada, with institutional tailwinds helping the altcoin outperform the rest of the crypto market, as suggested by major exchange executive Tracy Jin. However, this period of prosperity seems to have come to an end as the 23-day moving average has started to drop toward the 200-day moving average, which may lead to the formation of a death cross in the coming weeks.

Considering that the time frame is a weekly one, the emergence of this ominous pattern may break the uptrend of Solana against Bitcoin for a while. For Solana, the result may be a test of previous lows against the major cryptocurrency at 0.001 BTC per SOL. In dollar terms, this could mean a drop in Solana’s price to as low as $83.

A retracement to lower support zones also seems likely for the altcoin in Jin’s forecast. All in all, even if Solana survives the recent market turbulence, its performance against Bitcoin makes it a less preferable asset to hold right now.

Source