The crypto market has recently seen a period of consolidation over the weekend, with major cryptocurrencies displaying sideways action. Top tokens have remained within a narrow price range, indicating reduced price volatility and a possible cooling-off period in the ongoing rally.
The recent trial of SBF, who faced seven charges and was found guilty, has impacted Solana’s price. Solana (SOL) lost over 5%, and the cumulative loss since the verdict stands at more than 12%.
Since a market surge, SOL price has been on an upward trajectory, forming a rising channel pattern. For the first time since July, Solana broke through a crucial resistance level at $28.16.
This breakout led to a significant price surge, with SOL breaching multiple resistance levels and achieving new yearly highs. The price even attempted to challenge the resistance level at $46.83, a level last seen in August 2022.
However, this bullish rally was short-lived as bears pulled back the price, leaving a long wick on the chart. Subsequently, the price has been trading within a consolidated range of $38.77 to $42.50.
On the positive side, the 50-day Exponential Moving Average (EMA) has consistently provided support to the price, suggesting the potential for a bullish reversal in the near future.
The Moving Average Convergence Divergence (MACD) indicator has shown a constant red histogram since the 3rd, indicating a strong bearish influence in the market. The averages are also steadily declining, suggesting that the price may continue to depreciate in the coming days.
Will SOL Price Cross $50 Soon?
If the bulls regain strength and break through the resistance level at $42.50, SOL’s price could regain momentum and aim for the upper resistance at $46.83. Maintaining a hold at this level might set the stage for an attempt to reach the significant resistance at $50 this month.
Conversely, a breakdown of the rising support trendline could result in a loss of momentum, with the price testing the support level at $38.77 in the near future. In the event of a trend reversal, the price could fall further to the lower support level of $33.29 in the coming days.
Additionally, if investor sentiment wavers due to uncertainty in this controversial crypto space, the coin could experience a price plunge, potentially testing the lower level at $24.25 in the upcoming weeks.