Solana price faces a brutal death cross: could SOL crash below $70?
Solana (SOL) extended its decline on Friday, falling 3.5% to trade around $80.54 as a broader cryptocurrency market sell-off pushed prices briefly below the psychological $80 level.The cryptocurrency has lost 10% since the beginning of the week, adding to a prolonged correction that began after SOL traded above $120 in early October.The latest decline coincided with Bitcoin's drop below $70,000, triggering widespread liquidations across the cryptocurrency derivatives market.Crypto liquidations reach $1.64 billion as Bitcoin falls below $70,000The cryptocurrency market experienced another wave of heavy selling on Friday, with Bitcoin's decline below $70,000 adding pressure to major altcoins.According to CoinGlass, approximately $1.64 billion in leveraged cryptocurrency positions were liquidated over the past 24 hours.Long positions accounted for $1.43 billion of the total, indicating that traders betting on higher prices suffered the largest losses.The broader sell-off also coincided with weakness in technology stocks following Nvidia CEO Jensen Huang's resignation amid scrutiny over personal relationships.Bitcoin and several other cryptocurrencies have recently shown sensitivity to movements in artificial intelligence-related equities.Solana's derivatives market continues to show signs of weakening demand as traders reduce their exposure to the cryptocurrency.According to CoinGlass, SOL futures Open Interest is down 6.3% in the last 24 hours and now stands at $4.82 billion.Spot markets also experienced withdrawals, with reported outflows reaching $8.80 million.The figures suggest that market participants are becoming increasingly cautious as Solana extends its decline.Meanwhile, the SOL taker buy-to-sell ratio stands around 0.91, remaining below 1 since late July.A reading below 1 indicates that selling activity is outweighing buying activity, suggesting that bearish traders retain an advantage.Death Cross signals further downside risk for SolanaSolana's daily technical structure has deteriorated considerably following its decline from above $120 in early October.At the time of writing on Friday, SOL trades around $80.54, significantly below its major moving averages.The 50-day Exponential Moving Average (EMA) stands at $97.55, while the 200-day EMA is positioned near $98.62.The 50-day EMA has crossed below the 200-day EMA, forming a bearish technical pattern known as a death cross.This crossover typically reflects weakening medium-term price momentum relative to the longer-term trend.Solana has also broken below a previously supportive ascending trendline, now positioned around $91.20.The breakdown suggests that the cryptocurrency has lost an important technical structure that previously supported its recovery. The former trendline could now act as resistance if SOL attempts to rebound.Momentum indicators also reinforce the bearish outlook. The daily Relative Strength Index (RSI) has fallen to approximately 21, placing Solana in deeply oversold territory.An RSI reading below 30 generally indicates oversold conditions, while readings near 20 suggest that selling pressure has become particularly intense.Meanwhile, the Moving Average Convergence Divergence (MACD) remains below zero, with its signal line around -0.81.The negative reading suggests that bearish momentum continues to dominate, reinforcing concerns about further losses.If the bearish trend persists, Solana's immediate downside support stands at $77.60.This horizontal level represents an important area where buyers could attempt to stabilize the cryptocurrency after its recent decline.With SOL trading around $80, the market is already approaching this support zone. A successful defense of $77.60 could allow the cryptocurrency to consolidate or attempt a temporary recovery.However, a decisive breakdown below this level would weaken the technical outlook further. The next significant downside target stands at $67.50.FX:SOLUSD Daily Chart" class="wp-image-984788"/>Despite the bearish outlook, Solana could attempt a recovery if buyers successfully defend the $77.60 support level.The first significant resistance stands at $87.46. A sustained move above this level would suggest that short-term buying momentum is improving.However, SOL would still face another important horizontal resistance around $95.82. Beyond this level, the 50-day EMA at $97.55 and the 200-day EMA at $98.62 form a concentrated resistance zone.The proximity of these moving averages could make it difficult for buyers to sustain a recovery without stronger market demand.A decisive breakout above the EMA cluster would improve Solana's technical outlook and suggest that the bearish momentum is beginning to weaken.AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.