Solana (SOL) is making waves in the crypto ocean with a “death cross” on its one-day chart as of March 12. This ominous-sounding event has SOL consolidating near its long-term support level of $125, and it could spell trouble for the altcoin’s price. Could SOL plunge below the $100 mark for the first time since February 2024? The crypto community is buzzing with speculation.
A death cross is a bearish signal that occurs when the 50-day simple moving average (SMA) crosses below the 200-day SMA. It’s like a storm warning for traders, hinting at potential price drops. Last month, Solana experienced a similar event with its exponential moving averages (EMAs), leading to a 17% price dip from $137 to $122. The EMA reacts faster to price changes, making it a harbinger of potential market corrections.
Historically, Solana has faced three death crosses, including this one in 2025. The first in 2022 led to a massive 90% collapse, exacerbated by the FTX debacle. The second in September 2024 reversed quickly, thanks to the Trump rally. But this time, the market conditions are eerily similar to the 2022 scenario, with a new all-time high preceding the downtrend.
Adding fuel to the fire, Solana’s revenue has plummeted by 93% since January, dropping from $238 million to just $32 million. The memecoin mania that once fueled activity on Solana’s network has fizzled out, leaving traders wondering if SOL can defend its $125 support level.
For Solana to stage a bullish comeback, it must hold strong between $125 and $110. Since March 2024, SOL has rebounded six times after testing this support range, each time closing above $125 on weekly retests. However, a weekly close below $125 could signal market weakness and increase the likelihood of a drop below $100. The next target could be around $80, marking a significant 30% correction.
But there’s a glimmer of hope for the bulls. A bullish divergence between Solana’s price and its relative strength index (RSI) on the 1-day and 4-hour charts could be the lifeline SOL needs. If Solana can avoid another lower low, these divergences might push prices back above $125, potentially establishing a bottom at $112 and avoiding a dreaded drop below $100.
In the ever-volatile world of crypto, nothing is set in stone. Traders and investors must stay vigilant and conduct their own research before making any moves. As Solana navigates these turbulent waters, all eyes are on whether it can weather the storm or if it’s headed for deeper lows.
This article isn’t financial advice—just a glimpse into the thrilling ride that is the crypto market. Stay tuned and stay informed!
