Solana
Will Solana (SOL) price fall below $100, or is this just a temporary bottom?
In a drastic reversal, Solana failed to close the weekly trade on a bullish note as the token saw major bearish action. The descending corner in which the SOL Price Trading extended without any deviation, suggesting less intensity of ups and downs of late. This is expected to cause further decline as buyers display acute weakness, leading to an 8-10% fall over the next few days.
The markets are heading towards the end of the first half of the year and the increase in volatility was therefore highly anticipated. However, the trend has reversed in favor of the bears, as volume on sale has been in free fall for over 40 days. Furthermore, weekend volume remained drained by more than 60% compared to its average levels. This indicates prolonged bearish action, but only due to less bull involvement.
But why aren’t bulls accumulating Solana when the token is available at a discounted price?
With the latest bearish action, the price is about to enter the liquidity zone, which also happens to be the neckline of the double top pattern. The price was rejected after entering these zones and rebounded several times, making it a critical and decisive zone. Now that the levels coincide with the neckline of the M-shaped pattern, a decent pullback could be on the horizon. As the trade heads towards the monthly close, the price is expected to continue its downtrend and fall below the critical support at $100.
Additionally, SOL price is expected to test the next important support below $100 at $94.19. As these levels have always provided a basis for initiating a rebound, similar price action could occur during the first few days of the third quarter. If market dynamics change to some extent, only a recovery above $133 to $135 could prevent the price from seeing prolonged bearish action. Until then, Solana’s price projection remains bearish, with targets around $95 for the end of the month.