Solana in Bearish Territory: SOL Price Targets $137 Support

Solana’s Price Under Extreme Upward Pressure: A Closer Look

Solana’s price recently faced extreme upward pressure, causing a sharp decline from levels above $160 to close to $140. This mounting pressure raises concerns that the token may drop back to its support zone. However, if the bulls manage to hold certain key levels, the bearish narrative could be overturned, potentially paving the way for a recovery.

Recent Solana Price Movement

Following a recent upswing, there was speculation that Solana’s price could rise and reach levels above $170. Although trading volume remained within a restricted range, the bulls held significant dominance and strength, driving the price beyond $160. However, the latest bearish action has disrupted this bullish setup, as bears are now attempting to drag the price back down to its initial position below $140.

Will Solana Test the Pivotal Support at $133?

The key question on traders’ minds is whether Solana’s price will test the pivotal support level at $133, and whether the bears have outpowered the bullish strength.

Solana’s price has maintained a consolidated trend since the beginning of this movement and has shown resilience during previous bearish phases. The lower support at $120 has been defended multiple times, suggesting that a bullish continuation could still be on the horizon. However, technical indicators suggest that Solana may enter a prolonged consolidation phase within a narrow range, which could delay any rise above $160 for the time being.

While the bulls have attempted to stabilize a rebound amid the recent distress, a drop in market strength has hindered these efforts. The on-balance volume (OBV) continues to decline, indicating that the price may head towards the lower support, reinforcing the likelihood of a descending trend. Additionally, the Relative Strength Index (RSI) has signaled a potential bullish rebound, which could support a bullish narrative only if the price closes above $148 by the end of the trading day.

Analyzing the Solana Price Rally

Currently, the outlook for Solana’s price rally remains uncertain, as both bulls and bears are exerting equal pressure on the market. For a more definitive direction to emerge, Solana’s price must hold above the support at $140 throughout the day. If this support is maintained, it could delay further bearish actions.

However, if the price rises above $150, it could alert the bears, who may then wait for levels to climb above $160 to $165 before initiating another round of bearish price action. As a result, the Solana price rally remains unclear, carrying the potential for both a bullish reversal and a bearish continuation.

Conclusion

In summary, Solana’s price recently encountered extreme upward pressure, leading to a sharp decline from above $160 to levels close to $140. This pressure suggests that the token may drop back to its support zone. However, if the bulls can hold key levels, the bearish narrative could be challenged. While Solana has maintained a consolidated trend, the technicals indicate a possible prolonged consolidation, leaving the future of the SOL price rally uncertain. Both a bullish reversal and a bearish continuation remain possible outcomes as the market continues to evolve.