The crypto industry has started the month on a strong bearish note as major cryptocurrencies have lost significant value in their respective portfolios. Solana token after trading in a rising channel pattern for a brief period, has displayed a bearish trend reversal, indicating a bear power in the space.
The Solana price traded in a closed range between $99.70 and $108.18 for a brief period, following which the market volatility increased and the bulls attempted a breakout.
However, the rally was short-lived as the price faced rejection at $116.95, after which it experienced a pullback within the range. After trading sideways for a while, the bulls lost momentum and recorded a correction of approximately 20% in valuation.
Following this, the Solana coin price constantly traded in a closed range between $90 and $99.70 for over two weeks, indicating a weak price action in the crypto space. After this, the Cross EMA 50/200 day recorded a Death Cross, resulting in the SOL token breaking down its crucial support level.
However, the bulls held the price above the lower support level of $80.19, following which the price traded sideways for a while. After multiple attempts, the market regained momentum and gained 20% in value over the next few days.
Recently, the SOL coin faced rejection at $108.18, resulting in it losing over 12.5% in valuation.
Will SOL Price Increase Again?
The technical indicator, MACD, displays a rising negative histogram, indicating a strong bearish influence in the market. Further, the averages show a massive drop in the chart, suggesting the price will continue losing value in the coming time.
If the market holds the price above the support level of $90, the bulls will regain momentum and test its resistance level of $99.70. Moreover, if the market holds the price at that level, it will prepare to test its upper resistance level of $108.18 during the days ahead.
Negatively, if the SOL token fails to hold the price above the important support level of $90, the bulls will lose momentum and fall to test its crucial support level of $80.19 this week. Further, if the price continues to trade under a bearish influence, it will plunge and prepare to test its lower support level of $71.98.
