After a small jump, the crypto space withstood a massive fall, whipping nearly $70 billion from the market. Solana’s price had raised above the seven-month descending consolidation and was believed to face a small pullback. Unfortunately, the correction has transformed into a rejection as the price has entered a bearish pattern carrying the possibility of a major downturn, probably during the weekend.
The latest rise above the resistance indicated that the SOL price may not repeat the previous trend of a 20% pullback after a rejection. However, the recent price action indicates that the trend may repeat as the SOL price has returned to the rising wedge. With this, the possibility of another breakout and a pullback remains imminent. What’s next? Will the SOL price drop down to test the support around $125?
The SOL price faced rejection from the descending trend line, which has been a strong resistance for the past few months. However, the price is trying hard to defend the interim support zone around $161, which has kept up the bullish momentum. Besides, the 50-day & 200-day MA are about to undergo a bullish crossover, also called as ‘Golden Cross,’ which has always offered a bullish push.
On the other hand, the DMI, which suggests the direction and strength of the token, was preparing for a bearish crossover; however, the formation suggests it is having a second thought. Therefore, the Solana price is primed to maintain an ascending trend after rebounding from the support of the rising wedge and the Golden Cross may help it to breach above the descending trend line.
As a result, a rise to $180 appears imminent but the bears who are stationed here may offer a strong resistance for the Solana (SOL) price rally.
