Solana ($SOL) has seen its price plummet by 24% in the past ten days as crypto traders have become increasingly bearish on the token’s prospects.

The massive sell-off of $SOL has halted the token’s prolonged uptrend that began in mid-June.

As such, traders appear to be shifting their focus to BTC20 ($BTC20) – a brand-new presale project offering enticing staking rewards and an eco-friendly approach.

$SOL Price Chart Flashes Warning Signs as Token Nears Vital EMA

At the time of writing, the Solana price is hovering around $24.53 – and has closed in the red in five of the last eight days.

As evident from the daily price chart, $SOL peaked at the $32.00 level on July 14 before it began a sustained downtrend that continues to the present day.”

This downtrend means that $SOL is nearing the 20-day Exponential Moving Average (EMA) – a crucial metric for identifying a token’s short-term trend.

If $SOL were to dip below this EMA, it could signal further downside for the token in the short term.

However, Solana bulls will be hoping that the 20-day EMA holds as support since this could provide the impetus needed for a reversal.

This scenario seems viable, given that CoinGecko sentiment analysis reveals that 67% of the community is still “feeling good” about Solana’s prospects.

Additionally, the Crypto Fear & Greed index is still in “Greed” territory – hinting that Solana’s ongoing woes may be temporary.

Solana Price Slide – What Has Caused the Sell-Off?

So, why has Solana’s price been sliding?

The most obvious reason lies in the token’s technical indicators. On July 14, just before $SOL’s drastic decline, the Relative Strength Index (RSI) reached 82.70 – significantly into “overbought” territory.

When a token is in overbought territory, it indicates a high chance that profit-taking will ensue, which appears to be what has happened with Solana.

Unfortunately, Solana’s sell-off intensified as more traders became aware of the price dip, resulting in a negative feedback loop that prompted even more traders