Solana Price demonstrates acute strength and the ability to withstand bearish interferences occurring at frequent intervals. After hitting the lower support zone, the token rebounded very well, which revived the possibility of achieving $200 in the next few days. However, the current trade setup suggests that market participants may be required to wait for some more time as the SOL price rally is displaying the probability of a minor pullback.
Ever since the SOL price soared above the pivotal resistance-turned-support zone between $173 & $176, the token has sustained above the support zone. While the technicals have flashed bullish signals, the rally appears to undergo a diverse trend very soon. Instead of framing it as a pullback, it can be said that the price may offer a golden opportunity to accumulate below the crucial support very soon.
The above chart displays the price is trading within a bullish range as the price is trading above the last point of defence, regardless of the growing selling pressure. The Gaussian channel has flipped into a bullish range which validates the possibility of a continued ascending trend. However, the MACD is displaying a diverse trend as the buying pressure appears to have faded to a large extent. This may weaken the bulls and compel the price to consolidate after a minor pullback.
Does this suggest, the SOL price could drop below $170 again?
Although the bearish possibility does emerge, the bulls do remain active, as they have discovered a strong base between $178 and $180. If the bearish pressure increases, then the price can find itself within a buffer level between $176 and $166, which is located above the Gaussian Channel. If the price drops below the channel, the bearish clouds may hover over the Solana price rally, which appears unlikely considering the current trade setup.
Therefore, the SOL price rally may drop to $170 with a slight rise in the selling volume but after offering a good buying opportunity, a steep rise to $200 appears imminent. With this, the doors for a new ATH above $300 may be unlatched.
Credit: Source link