The post Solana Price Failed to Break Out, Technicals Turn Bearish—What’s Next? appeared first on Coinpedia Fintech News
Solana Network recorded an insane amount of DEX volumes with the launch of the OFFICIAL TRUMP (TRUMP) memecoin. The levels made a history of reaching over $200 billion in monthly volume, which has not been achieved by any other network to date. This prompted the SOL price to rise above the consolidation it held in the past few days. However, the bears restricted the rally, suggesting the possibility of continuing the prevailing sluggish trend.
SOL price again touched the pivotal resistance at $270 for the fifth time in the past few days, hinting towards the bulls being focused on elevating the levels beyond the consolidation. Meanwhile, the inefficiency is sustaining above the range, indicating the lack of strength, mainly due to a massive drop in the volume. Unfortunately, the technicals have also turned bearish, suggesting the beginning of a descending trend.
Will the SOL price drop hard? Can the support at $240 offer the required base to trigger a rebound?
After the recent rise from the bottom close to $175 to a new ATH above $295, the market participants turned highly optimistic over the next price action. Meanwhile, the rejection from the same resistance validates the strong presence of the bears that may have turned it extremely rigid. The STOCHRSI has reached the lower threshold, suggesting a rebound could be around the corner. However, the price is testing the crucial 50-day MA, breaking which could drag the levels below $240.
Solana Network has become the most favorable platform for memecoins, which has dragged huge liquidity. However, considering the current price action, the hype remains for a short time frame, which badly impacts the SOL price later. Meanwhile, the push for Solana ETFs by big institutions has been making a huge noise, due to which the possibility of a bullish continuation remains higher.
Therefore, the Solana (SOL) price may drop now but the support at $240 or $237 may offer a strong base that may prevent an extended pullback.