Solana (SOL) price completed a “death cross” on the one-day chart on March 12, as the altcoin consolidated near its long-term support level at $125.
This could potentially accelerate the SOL price sell-off in the near term for a drop below $100 for the first time since February 2024.
Solana’s 1-day chart. Source: Cointelegraph/TradingView
A death cross occurs when a bearish crossover occurs between the 50-day and 200-day simple moving averages (SMAs), with the long-term indicator above the short-term indicator.
Last month, the 50-day and 200-day exponential moving averages (EMAs) triggered a death cross on Solana’s one-day chart, after which prices dropped 17%, from $137 to $122.
While the SMA and EMA death crosses carry similar implications, the EMA triggers the death cross faster since it responds more quickly to price changes. A double death cross from the SMA and EMA will likely increase the possibility