Solana (SOL) Forms Lower Highs, Struggles to Break Key Resistance Levels as Bullish Momentum Fades

The once-strong bullish sentiment surrounding Solana is starting to fade as it forms lower highs and struggles to break through key resistance levels.

After reaching a peak of $193.89 on July 29, the token’s upward momentum has stalled. The formation of lower highs indicates a weakening trend, suggesting a lack of strong buying pressure.

Technical indicators, such as the Directional Movement Indicator (DMI), show that the bulls still have a slight advantage, with a +DI of 23.0564 over the -DI of 20.3474. However, the ADX reading of 19.2392 indicates that this bullish momentum may be insufficient to drive prices higher in the short term.

Despite this, Solana's price has remained in a consolidation phase, trading at $143.27 at the time of writing. The token has seen a minor 0.18% decrease in value over the last 24 hours, while its market cap has also seen a slight decline.

On the other hand, the 24-hour trading volume has shown a surprising increase of over 77%, reaching $2.4 billion, indicating a high level of activity from traders.

Solana now faces a crucial resistance level at $152, which could hinder any upward price movement. If the cryptocurrency fails to break through this resistance, its price could drop toward $134, a level that analysts are closely watching 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.

Conversely, 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.

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