Solana Rebounds: Is This a Temporary Upswing or the Start of a New Ascending Trend Targeting $200?

In the times when the crypto markets are juggling between a narrow range, the Solana price is diving deep, squashing the local support levels. The price plunged below the psychological barrier at $170, validating a continued descending trend. When the lower targets at $150 have been activated, the optimism around the token remains higher. This suggests the token could be trading within a controlled environment and as a result, the SOL price may be primed for a sudden and quick rebound. 

While the SOL price is feared to drop towards the lower range, its DEX volume is getting heated up. It has been over $2B to $3B while the price maintained a consistent descending trend. On the other hand, the active address count over the Solana network dropped from $18.5 million in November to just $8.4 million. In the times when the bearish pressure was trying hard to outpower the bullish possibility, the SOL price triggered a strong rebound back above $170, squashing the bearish trajectory for a while. 

The recent pullback had turned the Gaussian channel into bearish, which continues to flash bearish signals regardless of the current rebound. Despite a bullish reversal in the RSI, the price is expected to remain consolidated within the lower range until the channel turns back to bullish. Therefore, the SOL price is believed to experience equal bullish and bearish pressure in the next few days while the volume could remain below the average. 

The current trade setup does not show a large possibility of a breakout beyond $175 in the short term. However, as the market sentiments ease a bit, the buying volume is expected to rise, which could further elevate the Solana (SOL) price above the bearish range. Hence, the SOL price continues to remain under bullish influence, regardless of the interim pullbacks.