Solana’s Critical Juncture: Navigating the Death Cross and Descending Channel
As of November 24, 2025, Solana (SOL) finds itself at a pivotal technical crossroads, with its recent recovery rally stalling around the $130 mark following a period of significant volatility. The cryptocurrency has been testing crucial support levels between $121-$123, demonstrating the ongoing battle between buyers and sellers in the current market environment. A particularly concerning development has emerged in the form of a death cross formation between the 50-day and 200-day moving averages, marking the first such bearish technical signal since early 2023. This classic technical indicator typically suggests weakening momentum and potential further downside pressure. The current price action remains confined within a well-defined descending channel pattern, with SOL facing substantial resistance in the $135-$140 range. While there has been noticeable buying interest at the current support levels, the overall momentum remains weak, as evidenced by the Relative Strength Index (RSI) reading of 33. This RSI level indicates oversold conditions but hasn't yet translated into significant bullish momentum. The combination of these technical factors presents a challenging environment for SOL bulls, who must contend with both the descending channel structure and the bearish implications of the death cross formation. Market participants are closely watching for either a decisive break above the channel resistance or a breakdown below the critical support zone, either of which could determine Solana's medium-term trajectory. The current stabilization near $130 suggests a period of consolidation, but the weak momentum indicators suggest that buyers need to gather significant strength to overcome the prevailing bearish technical setup. The coming days will be crucial in determining whether SOL can build a base for a sustainable recovery or if the death cross will exert further downward pressure on the cryptocurrency's price.
Solana (SOL) Price: Recovery Rally Stalls as Death Cross Forms – What’s Next?
Solana stabilizes NEAR $130 after a volatile week, with key support tested at $121-$123. A death cross formation between the 50-day and 200-day moving averages signals bearish momentum—the first such occurrence since early 2023.
The cryptocurrency remains confined within a descending channel, facing resistance at $135-$140. Despite buying pressure at support levels, weak momentum persists with RSI at 33. A breakout above $144-$146 could indicate trend reversal, while failure to hold $121 may push SOL toward $107 or even $95.
Solana Eyes $140 Rebound Despite Market-Wide Liquidations
Solana trades under pressure as crypto markets retreat from November highs. Long liquidations cascade across altcoins, yet key technical levels suggest resilience.
The $SOL chart shows robust support near $120—a level that held during May's selloff. Momentum indicators flash oversold readings not seen since January, when the token rallied 47% in three weeks.
Market makers note unusual put/call skew in solana options, with demand concentrated at $140 strikes through July expiry. 'This isn't just gamma hedging,' says FalconX derivatives trader David Park. 'Real money is positioning for mean reversion.'
Solana Faces Liquidation Risks as 80% of Supply Sinks Underwater
Solana's market structure shows signs of strain as Glassnode data reveals 79.6% of circulating SOL (478.5 million tokens) now held at a loss. The $126.9 price level has become a critical threshold, with $239 million in long positions facing liquidation if SOL dips below $124.40.
CEX.IO analyst Illia Otychenko warns of potential capitulation: 'Investors waiting to break even may trigger cascading sell-offs if weakness persists.' The token currently hovers near $129, down 1.4% daily.
Contrasting views emerge from industry players. NOBI CEO Lawrence Samantha argues such liquidations can reset unhealthy market structures, suggesting potential long-term benefits despite short-term pain.
Solana Faces Headwinds as Whales Shift Toward Fiat-Compatible Tokens
Solana's price action turns choppy amid a broader market pivot toward tokens with direct fiat operability. The network's signature speed and scalability now compete with projects like Remittix, which bridges crypto to traditional bank rails. December's planned protocol update may reignite momentum, but SOL bulls must defend the $124 support level to avoid further downside.
Institutional interest persists—Solana ETF products have notched 18 consecutive days of inflows since early November. Yet the $130 trading level reflects hesitation, with whales diversifying into assets offering smoother off-ramps to fiat. Market sentiment hinges on whether SOL can reclaim $140 with conviction, a threshold that WOULD signal renewed bullish momentum.
