Sahana Vibhute
Yet again the crypto markets plunge at the beginning of the fresh monthly trade. Previously, when the markets began the monthly trade on a bearish note, the Solna (SOL) price faced an 18% to 20% pullback and almost tested the lower support at $120. If a similar price action reciprocates, then the Solana price is feared to lose all its gains incurred in the past couple of weeks.
The SOL price has faced a more than 7% plunge since the early trading hours as market sentiments turned bearish.
Solana has outpaced Ethereum despite the launch of Ethereum ETFs in terms of weekly revenue amid the memecoin frenzy. Besides, the SOL/ETH continued to consolidate below the ATH which flashed signs of risk for a breakout. This move was materialised during the early trading hours which turned out to be extremely bearish. The bulls are displaying acute strength but the price is feared to drop another 10% by the end of the week.
The SOL price faced rejection from $190 for the second time while attempting to reach $200 in the past couple of months. With the pullback, the Bollinger bands have begun to contract and the price is about to drop below the average levels of the bands. Besides, the DMI is about to undergo a bearish crossover, which validates the beginning of a bearish trend. However, the bulls continue to hold some strength that may trigger a rebound.
The token earlier tested one of the important supports at $166 and triggered a rebound. If the bulls reclaim their position within the support-turned-resistance zone between $171 & $176, the bearish trajectory could be squashed for a while. However, the bullish possibility remains pretty low as crypto market sentiments continue to favour the bears, which suggests a drop to $155 could be imminent if the Solana (SOL) price fails to sustain above $165.
