Solana (SOL) Faces Bearish Outlook Amid Potential Death Cross vs Bitcoin

Solana (SOL), a top-performing altcoin in recent months, is now flashing bearish signals as technical indicators point to a potential downtrend against Bitcoin (BTC). Currently trading at 0.00158 BTC, or approximately $133.16, Solana has shown strong recovery from last week’s lower price levels. However, this rally may be short-lived.

Since January, SOL has lost 54% of its value against BTC, and although it rebounded by 23% last week, analysts warn that a death cross formation may be on the horizon. The 23-day moving average is approaching the 200-day moving average on the weekly SOL/BTC chart—a pattern historically associated with major declines. If this death cross confirms, Solana could fall to its previous low of 0.001 BTC, potentially pushing its USD value to around $83.

Institutional interest had recently boosted Solana’s momentum, particularly following the launch of the first Solana ETFs in Canada. However, this upward momentum appears to be fading. Exchange executive Tracy Jin noted that Solana might soon retrace to lower support levels, reinforcing bearish sentiment.

Despite Solana’s strong fundamentals and vibrant ecosystem, its short-term technical outlook suggests caution. With Bitcoin maintaining dominance and Solana’s trend weakening, crypto traders may find BTC to be the more favorable asset in the near term.

As the broader market watches for confirmation of this bearish crossover, investors should be prepared for potential volatility. A retest of key support zones could redefine Solana’s trajectory in Q2 2025, making it critical for traders to monitor both the SOL/BTC chart and Bitcoin’s broader market movement for clues.