Solana's bullish momentum faces challenges as selling pressure intensifies. Despite maintaining bullish influences, a bearish daily close could reverse the trend. The price remains within a range, with technical indicators suggesting a potential downtrend. Bears are gaining dominance, while bulls struggle to sustain the rally. The SOL price currently trades around $130, facing a significant daily loss and a weekly decline of over 25%.
Solana Bulls Struggle to Maintain Support Amidst Escalating Selling Pressure
The Solana (SOL) cryptocurrency market is experiencing a fierce tug-of-war between bullish and bearish forces, with the selling pressure intensifying to a significant extent. While the price remains within a bullish influence, another bearish daily close could potentially reverse the recent rally in the short term.
After a prolonged period of stability, the Solana price has become entrenched within a crucial range for several days. Despite the bulls' valiant efforts to sustain the bullish trend, the bears are gradually gaining ground. Following a sharp decline below $150, the rally has seemingly stalled, with limited price fluctuations observed. The price is currently struggling to defend the local support level, raising concerns about the possibility of an extended bearish correction.
The current market conditions suggest that SOL is undergoing a corrective phase, with both bulls and bears exerting equal pressure on the token. This dynamic is reminiscent of similar trends observed in other altcoins. The price has been confined within a narrow range, with the Stochastic RSI indicator hovering near its lower support and failing to ascend into the bullish zone. This technical indicator suggests a potential downward trajectory, although local support may provide some temporary respite.
The overall trend has shifted in favor of the bears, as evidenced by the recent shift in the Ichimoku clouds. This indicator, which previously indicated a bullish bias, has now flipped, signaling a significant change in both the trend and the underlying momentum. As previously mentioned, the RSI indicator exhibits no significant variation, further supporting the bearish thesis.
Despite a modest increase in buying volume, the levels remain below the required threshold, suggesting that the anticipated rebound may take longer than expected. Currently, Solana is trading around $130.12, having incurred significant daily and weekly losses of over 7% and 25%, respectively.
While the market cap has dipped below $60 billion, Solana remains firmly entrenched in fifth position, maintaining a substantial margin over the next contender. The performance of Bitcoin in the coming days, particularly over the weekend, will be crucial to monitor. If, as many speculate, Bitcoin falls below $60,000, altcoins are likely to follow suit, potentially pushing SOL below $120 to retest its local lows at $115.
However, a resurgence of a bullish rebound remains a possibility, contingent upon the strength of the bulls and the volume of buying activity.
