Bearish Clouds Hover Over Solana’s (SOL) Price Chart—Will It Fall Below $200?
The crypto markets are being prepared by popular altcoins posting huge gains in the past few days. With the prices of XRP and ADA rising above $1 after a long time, the momentum seems to have shifted in favor of the bulls. Meanwhile, Solana, which has seen some scary moves lately, has failed to attract traders' attention as its price has declined from November highs.
Solana has soared, entering the top 5 cryptos and becoming the 4th largest crypto in a short period of time with a market cap of over $120 billion. As a result, the bears intensified their activity and created a significant rebound in the price of SOL, which fell by 20%. After this move, the token experienced a decrease in its social size, especially its emotions. The quoted number has decreased significantly, which indicates that traders are not interested in the indicator.
With this, will the demand for the token decrease as the technicals support the bears? If yes, is the SOL price going back to $200?
The token once again failed to break through the high resistance of the rising parallel channel that it held since the beginning of the year. It has previously caused a large reversal, which increases the likelihood of a similar price action as the technicals mirror the previous pattern. MACD was very bullish until SOL price rose above $200 in Q1 2024, but shortly thereafter the buying pressure faded, followed by MACD and signal line crossings.
On the weekly SOL price chart, the buying pressure has eased over the past two weeks, which has strengthened the price. Moreover, the steps are leading to the bear crossing. Additionally, the sinking RSI confirmed the bearish claim, suggesting that the price may head below $200 if the bulls continue to remain passive. However, the volume of sales remains low compared to the purchase, which means that the strength of the bears may be less than that of the bulls.
Therefore, Solana's price continues to remain under downward pressure, bearing the possibility of a major rebound. However, if the bulls fail to defend the support at $200, the token may drop to the key support at $185, which is one of the important resistances made earlier.
