The post SOL Price May Drop to $122 if This Trade Plays Out Well—Will Solana Bulls Gear Up Now? appeared first on Coinpedia Fintech News
Solana is among the tokens that have been closely monitored in recent times. Although the token has demonstrated massive price movements, the current trade setup suggests the price is close to beginning a fresh bearish trend. The token has remained stuck within a range for a prolonged period, which suggests the bulls are failing to generate the required momentum. Hence, an inverse trade will soon begin if the buying pressure remains below the average for the next few days.
The current SOL price chart looks incredibly similar to what the ETH price did in late 2020, before sending it to new ATHs. Ethereum then underwent a parabolic recovery and surpassed its previous high close to $1400, which further lifted the levels to its new ATH above $4500. Solana also appears to be following a similar consolidation, which may result in a breakout, which may send the SOL price to a 4-digit figure.
However, in the short term, the Solana (SOL) price is feared to lose some momentum, which may cause the token to enter a pivotal liquidity zone in the coming days.
The SOL price dropped back below the descending trend line, which it breached during the July breakout. Unfortunately, the bears exhibited their strength, which dragged the levels within the bearish range; hence, their growing dominance may be harmful to the upcoming price action. The Gaussian channel remains bullish, but the price appears to be on the verge of hitting lower support, which could cause the levels to fall below the range, as it has done previously when the token broke support.
Therefore, the Solana price appears to be stuck in a decisive phase where the bulls are required to demonstrate some strength. Otherwise, the price may yet again drop to a lower level, which may attract the trader’s attention. However, the volume remains within a decent range, which suggests enough participation from the bulls, validating the bullish scenario for the SOL price rally.