Solana has struggled to rise beyond the $40 mark after concluding June with bearish tendencies. The altcoin experienced challenges even after welcoming this month with a bullish leg, but inspection reveals the reason behind this restricted performance.
It appears Solana has been hovering inside a wedge setup underpinned by ascending resistance and descending support levels since June.
Meanwhile, the higher support level has propelled Solana’s near-term price movements into higher lows. That signal bears losing strength, but the mentioned descending resistance pushed the altcoin into a constricted zone.
Solana is about to escape the triangle setup, and bullish breakouts seem imminent for the alt. Nevertheless, some factors indicate higher possibilities of bearish retracements and a possible mid-June lows retest. That means the asset can decline beneath $30 and explore the $28 value region.
While publishing this content, SOL traded near $37.09, following declines from the $39.20 highs as of July 15. That shows the altcoin experiences some selling momentum after slightly crossing beyond the resistance level. The Relative Strength Index hovered around the 50% mark while the Money Flow Index shows tapering out accumulations.
A Chance of Bear Attack
Solana’s Binance derivatives funding saw substantial declines within the past 24 hours. That shows investor sentiment shifting to favor downtrends after SOL pushed towards the plunging resistance level. The whale supply metric supports such observations with a 0.19% decline over the previous three days.
The decline in whale supply shows an upside move will be weak to overcome the selling momentum from leading addresses. Solana retesting its current resistance might catalyze another plunge, potentially welcoming further price drops.
The alt saw its development activity on significant drop since June 13. And that might further ruin sentiment in bearish favor. Such a development could trigger a surge in downside pressure, thus the possibility of breaking through the support level. That can see SOL retesting sub-$30 zones>
Final Thought
Solana’s current price trends show possible bullish breakouts for the altcoin. Remember, this remains possible with massive accumulation around current levels.
That would likely emerge when the overall cryptocurrency market presents bullish momentum. Nevertheless, the downside remained highly considering SOL’s latest upsurge, large address outflows, and the resistance line.
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