When the market turns bullish, Solana's price shows a different trend, with the potential to test immediate lower support levels. The bearish pressure on the token continues to rise, raising concerns about year-end targets as significant liquidity shifts occur. Compared to the previous week, trading volume has decreased by over 5%, indicating an imminent major contraction.
After becoming one of the top blockchains, Solana has gained significant attention and is now also a home for developers. This has made investors more confident and optimistic about the price of SOL. According to some data, the long-term asset retention rate of Solana has significantly increased. Therefore, market participants are now expecting the value of the token to rise significantly in the coming months.
The SOL price maintains one of the key levels around $216 as support, which has provided a strong foundation over the past week. Although bulls are trying to maintain the upward momentum, the increasing upward pressure is weakening them. Therefore, defending these levels could be crucial, which may help the token end the annual trading in a bullish posture.
Over a longer time frame, the SOL price has completed a massive cup-and-handle formation and has retested after breaking the neckline. Therefore, it seems quite clear that the token may now trigger a strong rebound. However, the declining buying pressure indicated by the MACD has raised some concerns, as trading volume has also decreased to a certain extent. Additionally, the levels show a potential bearish crossover, which could pull the SOL price below key support levels, exacerbating the rise in SOL prices.
On the other hand, DMI's +Di and -Di are moving towards a bearish crossover, but both have stopped and are trying to reverse bullish. Additionally, the ADX, which records rebound strength, is rising. Therefore, the price is expected to hold the support level of $216 and trigger a rebound, which could pave the way for a breakout to new highs of $400. If it fails, then Solana (SOL) could drop below $200, although this scenario is unlikely given the increasing bullish sentiment in the market.