Solana (SOL) Faces Continued Pressure After $145 Resistance Rejection

Key Takeaways

• SOL has dropped 12% in the past week, struggling to regain bullish momentum after rejection at $145.
• The CMF indicates selling pressure, which could keep SOL between $116 and $125 in the short term.
• Solana’s price is likely to break down below the symmetrical triangle and might hit a new yearly low.
• Interested in buying or selling SOLANA SOL? Read our review of the best exchanges to buy and sell SOLANA SOL.

Solana’s (SOL) price has fallen by 12% within the last seven days. This correction happened after the cryptocurrency was rejected at $145 despite attempts to invalidate a certain bearish pattern.

This rejection seems to have put SOL into more trouble, with demand nowhere to be found. In this analysis, CCN checks whether Solana’s price can reverse from this downturn. Let’s find out.

Solana Struggle Continues

On March 3, Solana’s price reached $180, flashing signs that it could climb above $200 again. However, that move was invalidated as it experienced a decline to $116.

After that, SOL experienced a brief upswing to $145, leading to a bearish flag formation, as shown below. The bearish flag formation ensured that the altcoin failed to move higher than $145 and is now below $125, which was the expected outcome.

According to the daily chart, SOL does not seem likely to recover from this correction anytime soon. One reason for this is the position of the Supertrend indicator.

Typically, when the green line of the Supertrend is below the price, the trend is bullish. But in this case, Solana’s price is below the red line, with signs that a major resistance lies near $150.

No Major Accumulation Yet

Furthermore, the Chaikin Money Flow (CMF) reveals that SOL might continue to trend downward. The CMF gauges the level of accumulation or distribution around a cryptocurrency.

An increase in the CMF reading indicates a rise in buying volume. Conversely, when the CMF declines, it signifies rising selling pressure.

The image below shows that the CMF on the SOL/USD daily chart has dropped to -0.01. Should the rating continue to slide, Solana’s price recovery might not happen soon.

Want to add SOLANA SOL to your portfolio? Discover the leading platforms for buying and selling SOLANA SOL on our exchange review page.

Instead, the altcoin might continue wobbling between the $116 and $125 mark.

SOL Price Stuck in Symmetrical Triangle

On the 4-hour chart, CCN observed that Solana’s price is confined within a symmetrical triangle. A symmetrical triangle forms when two trendlines with equal slopes converge/

A breakdown below the lower trendline signals the beginning of a bearish trend, while a breakout above the upper trendline marks the start of a bullish move. For SOL, the signs shown by the indicators above suggest that it could break below the lower trendline.

The Moving Average Convergence Divergence (MACD) also seems to agree with this thesis, especially as it has yet to be fully closed above the zero signal line. If the momentum becomes bearish, SOL’s price will likely fall to $112.15  and mark a new yearly low.

On the flip side, if Solana breaks above the upper trendline of the triangle pattern, the trend might change. In that case, SOL might climb to $155.24.

Should buying pressure increase, the short-term target could be higher, as the CMF might turn positive. In that case, Solana’s value might hit $180.90.