With 89% Chances of an ETF Approval, Will SOL Price Reach $160 This Month or Drop Back to $120?

Solana is becoming more popular nowadays with the growing optimism around the token. The main reason for the rising probability of a Solana ETF is ahead of all other filed ETF applications along with XRP.  On the other hand, the chain has been outperforming the other platforms in terms of DEX activity and volume, hinting towards the growing popularity of the chain compared to others. Despite the positive outcomes and the current rebound in the SOL price, here’s why the token is feared to trigger a pullback to $125. 

Drop in the Solana Market Data

The future markets have a massive impact on the upcoming price action as the traders bet on the future price movements. Currently, the Open Interest (OI), which is the total number of open contracts that are yet to be closed, has dropped significantly. With this, the volume is also dropped consistently. 

This suggests that the spot traders have also become unsure of the upcoming price action as the OI remains lower. With this, the volatility remains lower, keeping the price consolidated within a narrow range. On the other hand, the traders seem to have become bearish on Solana as the short trades pile up to a large extent. 

The above chart shows that the short trade has been increased heavily compared to that of the long trades. This hints that future traders believe the SOL price may plunge in the coming days, with the major price slabs at $130 and later at $128. After rising above $135, the bearish influence over the token has increased. This suggests the price may continue to remain within a consolidated range between $130 and $136 for a while. 

Is Solana (SOL) Price Heading Back to $125?

The weekly chart of Solana appears to be extremely bearish, as the price has dropped below the rising parallel channel and failed to reclaim levels. The buying pressure has risen consistently while the bulls have intervened a couple of times. As a result, the price has remained within the range, but the technicals suggest the price may face a bearish action soon. 

The weekly chart of Solana’s price suggests the token has stuck within a bearish range as the price is rising, but the weekly RSI is plunging. This hints towards a probable pullback that could be fast approaching. While the price has dropped below the support of the channel, if the token fails to reclaim the levels before the weekend, then the Solana price is feared to drop back to $125.