After rising above a certain range, the Solana price is finding it extremely difficult to rise beyond a specific price level. As a result, the price has been heavily consolidating within a very narrow range, just below the resistance. Besides, the volume has also not reached the desired level, which aggravates the possibility of the price undergoing a bearish divergence.
Does this suggest that the SOL price may plunge below $130?
The SOL price is stuck within a narrow range as the bears are slashing it soon after the token makes it close to $175. In times when the price was expected to plunge below $160, the price quickly rebounded and revived hopes of reaching $180. However, a fresh bullish push does not appear to occur in the next few days due to the fear of a bearish pullback mongering over the token.
The short-term trade suggests support for the bearish narrative, as the price is expected to reach the lower support below $165 very soon. The price is currently testing one of the key zones, which is a strong trend reversal zone. Therefore, if the bulls display weakness, then the price may face an interim rejection and drop to $164. However, the token has been managing to hold these support levels.
Nevertheless, if the RSI proceeds to hit the lower threshold, a fresh bearish descending trend could begin, which may trigger a 5% pullback. Solana underwent a few bounces in recent times and after this, it failed to break down from the interim support, which compelled it to move to the next resistance. Now that the bulls are failing constantly to rise above $175, a bearish pullback to $160 initially and later to $140 could be on the horizon. This may attract traders who may either fuel the bearish narrative or induce significant liquidity to propel Solana’s (SOL) price back above $170.
