A new bearish trend has taken hold in the cryptocurrency market, with Solana’s price dropping below $135, down more than 15% from the previous trading day. While market participants are wary of a continuation of the downtrend that could send the price below $100, trading activity suggests that bulls are capturing key support levels. Thus, a final push to support could see SOL price enter a decisive phase with both bullish and bearish targets by the end of July 2024.
SOL price remains inside a descending triangle, with the latest rejection from $155 preventing a “V-shaped” recovery towards $175. However, SOL price appears to have entered a decisive phase, suggesting that the token could either surpass $185 and reach levels above $200 or continue towards $120 and potentially drop below $100 if it fails to hold.
Currently, SOL price is expected to maintain a sharp downtrend and the levels may drag towards the key support zone between $124.75 and $119.80. The RSI is bearish and the MACD is about to make a bearish crossover. Hence, a drop to these levels may be imminent which could trigger a bounce as the support coincides with the 0.5 Fib. However, if these levels fail to hold, the price may drop below $100 and break through the weak resistance at $105.
However, the chances of this trade getting concluded are rather low as the bulls seem to be capturing the support zone around $120. A bounce from these levels could push the level above $135 or above the 0.618 FIB. We expect the bulls to show strength here and push the level above $155 to the 0.786 FIB. This move would boost the level above the bearish influence and raise hopes of a continued uptrend above $175 at 1 FIB later in Q3 2024.
Therefore, regardless of the current bearish influence on the token, the price of Solana (SOL) is under bullish influence.
