Solana has been grabbing the attention with vibrant moves as the traders are juggling around Solana, Sei, Sui, Toncoin, & others
Solana (SOL) price is attempting to showcase a breakout from the multi-month descending trendline but the technicals appear to be hinting towards a bearish scenario. However, hopes are still alive for a bullish close as the monthly closure may offer some light at the end of the tunnel.
While the trading activity rises, the volume plunges, suggesting a shift of focus, which may hurt the progress of the rally
Solana has been one of the hottest chains, probably more than Ethereum (ETH) or Bitcoin (BTC), as the platform has been observing tremendous activity. The recent activity on the Solana platform surged massively which highlighted the possibility of rising above the pivotal resistance at $150. However, the bulls are again falling weak after testing these levels, and hence the possibility of testing the higher target appears pretty vague.
SOL-based memecoins, AI-tokens, etc, have been making huge noise in the crypto markets, due to which the platform’s trading activity surged. However, this does not appear to have any major impact on the SOL price as it is unable to clear an interim barrier at $155. However, the bulls have continued to dominate the rally since the start of the month and hence they are speculated to close the trade on a bullish note.
But how? With the technicals turning bearish, how will SOL prices maintain a healthy upswing?
The weekly price chart of SOL offers a clear picture of the current state of the token which appears to be preparing for a breakout. Ever since the rejection from the highs around $200, the token’s resistance has been declining, which has been coupled with a declining volume as well. Soon the volume is expected to face extreme compression, which usually results in a massive explosion. And this compression may end up with the end of the ‘bearish September’.
Secondly, after withstanding consecutive bearish weeks, the bulls are trying to increase their dominance this week, as suggested in the weekly bull-bear power. The rise in the bullish strength may offer some hopes of a strong ascending trend in the days to come. However, the RSI formations may raise some concerns as it appears to be forming another lower high, hinting to trap the bulls at $150 after trapping initially at $200 and later at $175.
Regardless of the bearish clouds hovering over the token, the bullish expectations do make some room. Therefore, the upcoming monthly close may have a huge impact, as a close above $155 to $158 may raise hopes of reaching $180 in October. Otherwise, the horizontal consolidation may persist until the start of a fresh bullish wave.
