The crypto markets are consolidating ahead of the $5 billion liquidity entering the space, as FTX is set to distribute stablecoins to their creditors. While the Bitcoin price slipped below $105,000, the Solana price also hit the lows close to $160. The price continues to face more upward pressure, which could drag the levels below the range. With this, the price has reached a crucial price range; hence, a major pullback could follow if the bears continue to exert more pressure.
Now, the question arises whether the SOL price is reversing the trend of forming higher highs and lows.
The long-term price action of Solana remains under bearish action, regardless of the short-term price action. Unfortunately, the price is facing a pullback from the crucial resistance, which suggests the growing dominance of the bears. Meanwhile, the technicals have also turned against the bulls, hinting towards the price plunging towards the local support soon.
The SOL price is trading within a descending expanding channel, and the price is facing rejection after testing the upper resistance. The RSI has displayed a bearish divergence, while the CMF remains below 0. This hints towards the existence of the bearish dominance since the start of the year, regardless of the interim bullish action. If the upward pressure escalates, the price is feared to drop heavily to the local support at $151.97. Moreover. The price is plunging after hitting the 50-day weekly MA just below $170, which raises huge concerns.
After hitting the new highs above $3.5 trillion, the crypto markets seem to be consolidating for a while as Bitcoin faces some upward pressure. Therefore, a bearish weekly close could validate a fresh bearish action, pushing the Solana (SOL) price towards lower support, probably close to $130. Hence, the upcoming monthly close could be extremely important for the SOL price and the entire crypto market.
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