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The once-strong bullish sentiment surrounding Solana is starting to fade as it forms lower highs and struggles to break through key resistance levels. This shift in momentum is further highlighted by technical indicators, which now indicate a period of consolidation or possible decline. With the altcoin hitting a barrier of $152, the question remains: what’s next for SOL?
SOL Forms Lower Highs
Since peaking at $193.89 on July 29, the token has failed to sustain its upward trend. The altcoin has been forming a series of lower highs, signaling weakening momentum. This pattern reflects a lack of strong buying pressure, confirmed by the Directional Movement Indicator (DMI), which reveals that the bulls still hold a slight advantage with a +DI of 23.0564 over the -DI of 20.3474.
However, the ADX reading of 19.2392 suggests that this advantage may not be enough to push prices higher in the short term. Despite this, Solana’s price remains in a consolidation phase, hovering around $143.27.
The token experienced a minor 0.18% dip in value over the last 24 hours, while its market cap also saw a slight decline. Nonetheless, the 24-hour trading volume showed a surprising increase of over 77%, reaching $2.4 billion, indicating some activity level from traders.
Resistance Levels and Possible Outcomes
Currently, Solana faces stiff resistance around the $152 level, a critical barrier that could impede any upward movement. If the cryptocurrency fails to break this resistance, its price could dip toward $134, a level that analysts are watching closely for potential support.
This point could be a critical level to watch for potential buying opportunities, as a bounce from this support level could indicate a reversal in the downtrend. However, if the cryptocurrency cannot hold the $134 support, it could drop further, possibly testing the $120 level.
On the other hand, if the price manages to break through the $152 resistance and establish it as a new support, the next resistance level to watch would be $163.70. A breach of this level could push it higher, potentially reaching $170, marking a significant price recovery.
As Solana continues to consolidate, the next few days will determine whether the cryptocurrency can regain its upward momentum. Market conditions remain uncertain, and the outcome will likely depend on whether Solana can overcome the key resistance levels that currently hold it back.