Solana (SOL) Price Analysis: SOL Price Action Mimics Ethereum (ETH) Pre-ATH Consolidation, Will History Repeat?

After fresh bearish action, the SOL price was expected to trigger a strong rebound to reclaim $160, but the bears appear to have a diverse plan

Solana price was expected to trigger a strong rebound after the fresh bearish action, aiming to reclaim $160, but the bears seem to have a different plan

The token has displayed high chances of diving back below $125 in the coming days, which can be prevented if the bulls jump in at the right time

Solana is amongst the few tokens that have been closely observed in recent times. While the token has showcased massive price movements, the current trade setup suggests the price is on the verge of kicking off a fresh bearish trend. The token has been stuck within a range for a prolonged period, which suggests the bulls are failing to generate the required momentum. Hence, an inverse trade will begin if the buying pressure remains below average for the next few days.

The current SOL price chart looks strikingly similar to what the ETH price did in late 2020, before sending it to new ATHs. Ethereum then showcased a parabolic recovery and went on to breach its previous high near $1400, which further lifted the levels to its new ATH above $4500. Solana also seems to be undergoing a similar consolidation, which could lead to a breakout, aiming for the SOL price to reach a 4-digit figure.

However, in the short term, the Solana (SOL) price is feared to lose some momentum, which could lead to the token entering a pivotal liquidity zone in the coming days.

The SOL price dropped back below the descending trend line, which it breached during the July breakout. Unfortunately, the bears showcased their strength, which dragged the levels within the bearish range; hence, their growing dominance may be detrimental to the upcoming price action. The Gaussian channel remains bullish, but the price seems to be hitting lower support, which could cause the levels to drop out of the range, as seen previously when the token breached support.

Therefore, the Solana price seems to be stuck in a crucial phase where the bulls are required to showcase some strength. Failing to do so could drag the price to lower levels once again, aiming to grab the traders' attention. However, the volume remains within a decent range, which suggests sufficient participation from the bulls, validating the bullish scenario for the SOL price rally.

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