- Solana price action is being capped on the topside by an orange descending trend line.
- SOL prices are making lower highs and higher lows.
- As price action starts to fade in Solana, a lower break looks to be the outcome of the consolidation toward $105.
Solana (SOL) price action has been going sideways since the beginning of October and is starting to fade to the downside. On an intraday basis, SOL price action starts to consolidate with lower highs and higher lows. As bulls cannot defend the monthly pivot anymore at $156, expect bears to take the upper hand in Solana price action and dip toward $105.
Solana price sees bulls surrendering and bears gaining speed
Solana price action saw bulls trying to break above $180, but the attempt was short-lived and formed a cap with the orange descending trend line originating from September 10. With price action fading in October, bulls cannot withstand any bearish action and have to forfeit on the monthly pivot at $156.
The SOL price action still has the 55-day Simple Moving Average (SMA) providing support around $136. That support looks weak with only two tests, and both of them were not that clean with some SOL price action falling below the 55-day SMA. Bears look to hold all the cards and could run price action further to the downside.
SOL/USD daily chart
Solana bears will want to go for the first purple zone near $115 and $102. Specifically, the crossing between the purple descending trend line and the orange ascending trend line looks to be an interesting level where bears will undoubtedly look to lock in some profit near $105. A further push lower looks unlikely with the second purple bandwidth and $100 forming a base that bulls will want to defend.
In case market sentiment turns to the upside and provides some favorable tailwinds for SOL price, expect a retest of the orange descending trend line. A break above would unlock more ground to cover for the bulls toward $220.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.