Solana (SOL) is facing increasing challenges as its once-strong bullish sentiment begins to fade. The cryptocurrency has been forming lower highs since its peak of $193.89 on July 29, struggling to break key resistance levels. Technical indicators suggest a period of consolidation or possible decline for SOL, which has hit a resistance barrier at $152. The question now is, what lies ahead for Solana?
Lower Highs and Market Consolidation
The downward pattern is evident as Solana continues to form lower highs, reflecting weakening momentum. The Directional Movement Indicator (DMI) shows that the bulls maintain a slight advantage with a +DI of 23.0564 over the -DI of 20.3474. However, the Average Directional Index (ADX) reading of 19.2392 signals a lack of strong upward momentum in the short term.
SOL/USD 1-Day Chart (Source: CoinMarketCap)
Currently, Solana’s price hovers around $143.27, showing a minor dip of 0.18% in the last 24 hours. The market cap has seen a slight decline, while trading volume surged by over 77%, reaching $2.4 billion—indicating increased activity among traders.
Key Resistance and Potential Outcomes
Solana now faces significant resistance at the $152 level. Failure to break through this barrier could push the token’s price toward $134, which analysts are closely watching as a potential support level. A bounce from this point could signal a reversal in the downtrend. However, if SOL fails to hold this support, the price could drop further, potentially testing the $120 level.
SOL/USD 1-Day Chart (Source: TradingView)
On the upside, if Solana manages to break the $152 resistance and establish it as new support, the next target would be the $163.70 resistance. Breaking through this level could see the price rise to $170, marking a potential recovery.
As Solana consolidates, the coming days will be crucial in determining whether the cryptocurrency can regain its bullish momentum. Overcoming key resistance levels will be vital for any upward movement.
