Over the past few weeks, Solana has tested the $160 resistance mark several times. However, its latest climb to the benchmark has again ended in a retreat.
Now, the market is wondering whether the setback will push SOL down to the $120 mark. Early SOL price predictions suggest that the coin can revert to its month-long trading range. The only exception to this movement would be Solana’s price to find a footing in the $165 to $170 range.
However, a decreasing on-chain movement suggests waning usage and demand for Solana. It directly indicates a continuation of the ongoing correction phase. Since the rejection is in the high range, traders are considering SOL’s return to its previous lows.
The midpoint of the range, which lies between $156 and $116, is $136. Fibonacci retracement levels, at $141 and $122, provide ample support. With SOL witnessing a 10.8% dip, the $141 level is the current support for Solana. However, it remains to be seen whether the support level can fend off the bearish pressure.
If technical indicators are to be believed, the RSI is slipping under the neutral 50 mark. As it signals bearish momentum, the MACD also oscillates between bullish and bearish sentiments.
Investors are bracing themselves for a possible relief bounce at the $136 mid-range support. However, a shaky trading volume suggests a further drop to the $122 mark. Solana is currently trading at $154.67, up 7.66% in the past 24 hours.
The coin has previously shown miraculous comebacks, so the market has not given up on its bullish return yet. However, the coin lacks bullish conviction, making its future endeavors more challenging.