In a drastic flip, Solana failed to close the weekly trade on a bullish note as the token experienced a major bearish action. The falling wedge in which the SOL price is trading has been extending without any deviation, suggesting a lesser intensity of bulls and bears in recent times. This is expected to further cause more downfall as the buyers are displaying acute weakness, leading to an 8% to 10% plunge in the next couple of days.
The markets are heading towards the end of the year’s first half and hence the rise in volatility was much expected. However, the trend shifted in favour of bears as the on-balance volume has been plunging for over 40 days. Besides, the volume during the weekend remained drained by more than 60% from its average levels. This points towards an extended bearish action but only due to the lesser involvement of the bulls.
But why are the bulls not accumulating Solana despite the token being available at a discounted price?
With the latest bearish action, the price is about to enter the liquidity area, which also happens to be the neckline of the double-top pattern. The price has faced rejection after entering these zones and rebounded a couple of times, making it a critical and deciding zone. Now that the levels coincide with the neckline of the ‘M-shaped’ pattern, a decent pullback could be on the horizon. As the trade is heading towards the monthly close, the price is expected to continue with the bearish trend and drop below the critical support at $100.
Further, the SOL price is expected to test the next important support below $100 at $94.19. As these levels have always formed a base to initiate a rebound, a similar price action may occur in the first few days of Q3. If market dynamics change to some extent, only a recovery above $133 to $135 may prevent the price from experiencing extended bearish action. Until then, the price projection for Solana remains bearish, with targets around $95 for the end of the month.
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