Is It Time to Sell Solana? Here’s What You Need to Know About the Next SOL Price Action

The post Is It Time to Sell Solana? Here’s What You Need to Know About the Next SOL Price Action appeared first on Coinpedia Fintech News

The crypto markets are again consolidating as the bulls have faced enough opposition since the past trading day. Besides, the bulls are also displaying some weakness which is expected to hinder the progress of the rally ahead. The recent rejection of Solana from the crucial resistance level has more or less validated a bearish perspective for the token, while the bulls also have an opportunity to prevent excessive price drain if they hold these levels.

Plenty of positive news has made a huge impact on the markets, however, a couple of FUDs ruined the mounting buying pressure at once. Despite some huge upswings of over 20% to 30% since May, Solana’s price remains within a bearish pattern, which is a matter of concern at the moment. The bulls are holding the price within the range but a small step below this level may invite a 20% plunge by the end of the week.

Having said that, is it the right time to sell Solana? Will the SOL price drop to $120?

The SOL price has displayed remarkable moves in the past few weeks, however, the trend has remained within a bearish descending triangle. Moreover, the recent rejection from the resistance has almost confirmed the beginning of a pullback. The drop in the buying volume may further lead towards a bearish MACD crossover, compelling the price to drop below the support zone it holds right now between $152 and $158. 

On the other hand, the Ichimoku cloud displays a huge possibility of a bullish crossover, despite the growing upward pressure over the token. Both the Lead spans A & B are going parallel, which suggests the divergence may occur in the direction of the volume induced. Therefore, if the bulls gain some strength and manage to rise above $162, the bullish crossover may validate a rise above the bearish pattern. Otherwise, a drop below $155 may raise alarms and a further drop below $150 may validate a fresh pullback. 

This bearish move may drag the levels close to $125, which is the support of the descending triangle. If the bulls do not display strength, which is unlikely, a strong bearish move may drag the levels below the 3-digit range. On the contrary, a rebound may keep the Solana (SOL) price within a range that may further attempt a bullish reversal in the coming days. Regardless of the bearish scenario hovering over the token, the long-term perspective is bullish and hence selling Solana may not be a good idea.