The market sentiment surrounding Solana (SOL), one of the top cryptocurrencies, has taken a bearish turn as a sell signal flashed on its chart. If this signal holds strong, the price of SOL could experience a decline in the coming days, potentially towards the $129 range.

According to CoinMarketCap's latest data, SOL's price has only dipped by 1% over the past week. At the time of writing, SOL was trading at $142.28 with a market capitalization surpassing $66 billion, securing its position as the fifth-largest cryptocurrency in the market.

Popular crypto analyst Ali recently tweeted about a significant development concerning Solana. A sell signal appeared on SOL's 4-hour chart, indicating the likelihood of a price correction. This prompted AMBCrypto to conduct a closer analysis of the token's status to determine whether other metrics supported this potential price drop.

Based on Santiment's data, SOL's Weighted Sentiment showed a noticeable decline, suggesting an increase in bearish sentiment around the cryptocurrency. Additionally, Coinglass' data indicated a sharp drop in the long/short ratio, indicating more short positions than long positions in the market – further supporting the bearish outlook.

However, not all indicators pointed towards a bearish trend. Solana's Funding Rate decreased, a factor often associated with prices moving in the opposite direction. Furthermore, the Fear and Greed Index for SOL stood at 38%, indicating a "fear" phase in the market. This level of fear could potentially lead to a price increase.

In a previous report by AMBCrypto, it was noted that selling pressure on Solana remained low, which can be interpreted as a bullish signal. To gain further insights, AMBCrypto also examined Solana's daily chart and found that the Bollinger Bands indicated SOL was testing its 20-day simple moving average (SMA). Additionally, the Moving Average Convergence Divergence (MACD) displayed the potential for a bullish crossover, which could result in SOL surpassing its 20-day SMA.

If the bulls manage to gain momentum, SOL may target $163 before aiming for $186. However, if the sell signal's influence intensifies, investors might witness a drop in SOL's price towards its support level, potentially hovering around the $129 mark.

Market participants now keenly await the unfolding price action of Solana in the days ahead to determine whether the sell signal will materialize into a significant price correction or if other factors could nullify its potential impact.