Solana (SOL) Price Remains Stuck Within a Range, Hinting Towards a Drop in Trading Activity as Bulls Remain Passive

In the times when the traders foresee price heading towards fresh bottoms, the hidden bullish divergence flashes the possibility of reviving a rise to $150

Solana price has been unable to rise despite the optimism in the market, and this might be related to the shift in attention away from the token.

Solana price is speculated to be heading towards fresh bottoms in the coming days, but in the times when the traders foresee the crypto sliding down, the hidden bullish divergence flashes the possibility of the price action unfolding differently.

The start of the second quarter was bullish for the Solana (SOL) price as the levels crossed $125 after a tight consolidation, and the optimism in the market also aided the recovery in the broader crypto market. Although SOL-based tokens, like Chainlink and Optimism, are gaining momentum, the value of the native token remains largely unaffected.

Does this suggest that the market participants have shifted their focus away from the token, or is there something else that's preventing the bulls from pushing higher?

Solana price at a glance

At the time of writing, Solana is trading at $128, up 0.2% over the past hour and up 2% over the past day.

Solana price faces bearish influence

The main focus is on the formation of a bearish flag in the daily chart, which is displaying a breakdown from a channel that began in December 2023.

A breakdown from the pattern usually results in a massive pullback, covering nearly 61.8% of the bullish leg. But in the wider perspective, the bulls are trying hard to invalidate the pattern as they defended the lower Fib level multiple times.

Moreover, the technical indicator analysis also hints at a huge breakout following a tight consolidation for a while.

Solana price chart displaying bearish flag and technical indicator analysis

As seen in the above chart, the Solana price is stuck within a bearish pennant, but the bearish activity began much before the validation of the pattern. The Ichimomo cloud has already undergone a bearish crossover before the end of Q1 that compelled the price to begin the monthly trade on a bearish note.

However, the Bollinger Bands are trading parallel to each other, suggesting a drop in volatility. The technical indicator analysis also remains indecisive as the Relative Strength Index (RSI) has displayed a bearish divergence, while the Chaikin Money Flow (CMF) is trying to trigger a bullish divergence.

This suggests that the strength of the rally is weakening, but the bulls are gaining strength compared to the bears with a rise in the buying pressure. Hence, the Solana price is stuck within a determined range and displays a huge possibility of a pullback.

However, if the rise in volatility negatively impacts the crypto markets due to the announcement of new tariffs by US President Trump, a breakdown may drag the SOL price to $115 or $110. Only a major sell-off or a FUD may drag the levels below $100; until then, the probability of revising a rise to $150 remains imminent.