Solana
Is it over for the SOL price rally?
The FOMC minutes and new CPI data are poised to create ripples in the markets, and Solana price appears deprived of that impact. The price has been oscillating under a bearish impact for a period of time, and their influence is believed to have intensified if the SOL Price fails to find a certain price zone.
The latest drop in BTC Price, near $66,000, sent bearish waves across the entire market, including Solana. The price bottomed at $145 for the first time in the last 25 days, signaling the growing selling pressure on the token. Meanwhile, the optimistic start to the day offered the possibility of a rebound, but technical data indicates a continuation of a downtrend, which could cause serious damage to the token.
SOL price has roared and continued to inflate since the price triggered an uptick during the final quarter of 2023. However, the rejection of yearly highs above $200 appears to have initiated a new downtrend. The price has formed consistent lows and highs, signifying the growing strength of the bears, which could eventually lead the rally towards crucial support. Below are the daily chart observations of SOL price rise,
- SOL price has fallen below the support of an expanding wedge. Although the price has shown similar action before, this time the recovery is not quick. So this may not be a false outage, as has happened before.
- Since the price broke above the trend reversal zone between $155 and $159, they provide a solid base in every bearish encounter. However, the recent pullback caused the price to break after a few days of holding.
- The price fell below the middle bands of the Gaussian channel and failed to recover. Previously, when this happened, the price would fall to lower support and despite a bounce, the channel would turn bearish.
- Finally, the MACD is showing increasing selling pressure on the token as levels are slowly heading towards negative levels.
Collectively, the Solana (SOL) price rally currently appears stuck in a downtrend and is therefore likely to form new monthly lows below $140. If the bulls fail to defend the support, a prolonged pullback could force the price to test one of the important supports at $133, which could trigger FUD among market participants. However, a bounce from any level above $142 to above $155 could invalidate the bearish scenario, thus reviving the possibility of an uptrend.
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