The crypto markets are painted in red today, with the S&P 500 dropping close to 3% in the past few days. The Solana price, which was already trading in a sinking ship, witnessed a rise in the selling pressure, which caused the price to drop below $140. Currently, the price continues to experience massive selling pressure, which suggests the next pitstop for Solana could be close to $122. Now the question arises: whether it is the right time to buy Solana? is SOL price having a bullish future?
Ever since the rug pull cases of memecoins escalated on the Solana chain, the trader’s confidence over the token has dropped to a large extent. Besides, one of the popular crypto liquidity providers. In a recent update, the top crypto exchange, Binance, has also liquidated massive amounts of SOL through the market maker, Wintermute. This has raised the bearish possibility for the token, which is now believed to drag the SOL price lower.
While some believe that the platform is aware of some updates, which have turned them bearish on Solana, others feel the exchange is deliberately dumping the token to buy back the lower prices. Currently, the SOL price is facing extreme upward pressure, which is believed to drag the levels towards the next support below $120.
What’s the Future of Solana (SOL) Price Rally?
The Solana price has erased most of its gains in the past few days, reaching levels not visited since October 2024. The price has entered the pivotal support range between $136.5 and $133.6, which has offered a strong base throughout 2024. Meanwhile, the current trade setup suggests the price may eventually fail to defend these support levels, causing the price to dump close to $100.
As seen in the above chart, the SOL price has reached the crucial support levels with an increase in the bearish influence. The RSI has reached the level not visited since June 2023, while MACD since 2022. This suggests the token has officially initiated a strong descending trend, which may transform into a bear market if the price fails to hold the support at $119. Currently, the selling pressure has intensified, as seen with the MACD, suggesting the price may remain deflated.
Meanwhile, the on-balance volume (OBV) has been constantly dropping since the start of the month, suggesting the market sentiments have turned bearish. Hence, the SOL price may maintain a strong descending trend for a long time ahead.
Credit: Source link