After a long-term consolidation of Solana price, he only pulled his massive foot back to reach the key resistance levels above $170. The asset had to cross the pivotal resistance levels in order to reverse the bearish divergence. Despite the significant reversal, the price appears to be consolidating around these levels. Hence, indicating the strong trend of SOL price to move towards ATH.
At these levels currently, we are seeing strong competition between the bulls and the bears. However, the bears are currently taking profits as the price is down more than 3%. It appears that the price may continue to decline further and may reconsider the support levels below $150. However, the odds seem lower, but technical indicators point to a pullback.
Also read: Solana price analysis: After the massive rise in the third quarter, here’s what we can expect for the price of SOL in the fourth quarter
The price with the last weekend pump could be able to break above the $171 resistance but it is only short-term. However, the asset is testing the neckline of the “M-Shaped” pattern around $165 and is trying hard to break this pattern. Therefore, if the price rejects the pattern, a nice reversal above $180 might be possible. Otherwise, the price may collapse, but the test can be re-tested without diving into the depths of the sea.
On the other hand, the RSI bounces without breaking the trend line. However, the MACD is indicating a downtrend as selling pressure is slowly building up. Moreover, the trading volume has decreased significantly which is a bit worrying, however it can turn quickly.
Collectively, Solana price’s attempt to break the pattern may materialize within the next two hours. Whereas, a noticeable reversal towards the initial resistance above $180 appears to be possible. In contrast, if the price of SOL fails to rebound, a slight pullback around $160 could be on the horizon with a reversal in the future.
Read also: Will October be a hurdle or a blessing in disguise for Bitcoin (BTC) price?
