The crypto markets are entering the last weekend of the year, which is speculated to be bullish. However, the majority of the tokens have fallen into a bearish trap, and hence, the top 10 cryptos, including Solana, seem to be in the middle of a correction. While healthy corrections are believed to end with a trend reversal, a failure may initiate a fresh bearish trend, which may hinder the progress of the rally for a long time.
The SOL price raised eyebrows after surging from levels around $20 to as high as $126 in just a few weeks. The bears maintained a passive trend until they reached yearly highs but have been actively extracting profits for the past few days. This could suggest the end of the upswing that prevailed during the past few days and begin a fresh pullback below the pivotal support.
The SOL price has maintained a steep ascending trend since the start of the fourth quarter and marked yearly highs by surging by over 500%. Despite the ongoing bullish trend, the bulls failed to surpass the pivotal resistance at $133, offering the bears an opportunity to extract decent profits. The bull’s current appears to be drained out as they have run out of volume, which could have defended the lower support at $102.25 at the moment. Besides, the weekend trade is said to be extremely volatile, which may turn in favour of bears.
Besides, the SOL price, which is struggling to hold the pivotal levels at $100, is expected to drop below these levels. The technicals, like MACD, are about to validate a bearish cross-over, which suggests the token may witness more downside very soon. The current trade setup suggests the price may even reach the lower support zone at $75 if the bulls fail to defend the support at $80. Hence, one can expect some vibrant price actions for the next few days, while the Solana price may continue to be among the top performers of the year.
Credit: Source link