As the market struggles to gain momentum, the Solana price also appears to have lost ground as the bears are constantly suppressing the levels below $200. This could appear a bearish signal for many as the momentum is weak, accompanied by a significant drop in the trading volume. With the SOL price constantly slipping below the key levels and fewer participants in the market, the pressure is expected to mount, which may drag the levels deeper down the support.
The current trade setup of Solana has left the traders in deep confusion as the market dynamics support the bearish narrative while the chart pattern hints towards a potential rebound. Meanwhile, the price continues to hold within a pivotal range, suggesting the token could probably trigger a rebound, but a deeper correction seems to be inevitable.
As seen in the above chart, the price has been holding within a rising parallel channel regardless of the mounting pressure over the token. The price is trading between 50-day & 200-day MA acting as resistance and support, respectively. As the RSI is bearish and heading towards the lower threshold, more downfall could be imminent. Hence, the price may test the support of the parallel channel at around $186, followed by a massive rebound.
The Solana ecosystem has changed to a large extent. The platform remained functional for the last 12 months without undergoing any network outrage for the first time in history. The last one was recorded back in February 2024. After marking the highest DEX volume for January of over $258 billion, the platform also leads blockchain activity with 6.3 million daily active users, surpassing NEAR, TRON, APTOS, etc. and many more. Besides, the Solana-based memecoins continue to perform exceptionally well. These suggest a short-term reversal that may further initiate a fresh rise after the bulls gain back their dominance.
Hence, the Solana (SOL) price continues to remain under a bullish influence with the higher targets set above $300 later this year.
