Solana Price Prediction As Selling Pressure Signals A Pullback

Solana Price Prediction: The Solana coin has seen significant growth since mid-September, surging from $17.41 to its current trading price of $31.99—an 84% increase. However, this bullish momentum is currently experiencing resistance at the $34 level, owing to increased selling pressure in the broader crypto market, particularly as Bitcoin struggles to break past the $35,000 mark. Will this overhead supply lead to a new correction?

Also Read: VanEck Prediction on 10,600% Solana Price Rally By 2030 Triggers Debate

Overhead Supply Hints Upcoming Pullback

• A fake breakout from the $32 resistance sets the SOL price for a minor pullback
• The SOL price may face intense supply pressure $36 mark
• The 24-hour trading volume on the Solana coin is $539 Million, indicating a 43% loss.

Source-Tradingview

The daily timeframe chart reveals that the Solana price has been trading within a rising channel pattern, maintaining a long-term uptrend. Under the influence of this pattern and prevailing bullish momentum, the coin price could surge 12% to hit the overhead trendline around $36.

While the asset has recently reclaimed the $32 level, the overhead supply seems to be preventing further upside, suggesting that a minor pullback could be on the cards. By the press time, the SOL price trades at $31.83, with a modest growth of 0.3%

Historical data shows that previous pullbacks never went below the 50% Fibonacci retracement level, indicating that any upcoming pullback could potentially find support around the $25.7 mark to rejuvenate bullish momentum.

Can SOL Price Fall Back to $20?

In the near term, the SOL price appears to be on a bullish trajectory. However, investors should watch for significant selling pressure around the $36 resistance level. The asset has historically faced significant selling pressure upon retesting the upper trendline of its channel pattern, currently situated around $36. Previous interactions with this resistance have led to major corrections, and a similar occurrence could send the price tumbling down to the $20 range.

• Moving Average Convergence Divergence: The MACD (blue) slope moving above the signal line reflects a strong bullish trend in this asset.
• Average Directional Index: The ADX slope at 49% reflects the current recovery may reach maturity and thus a pullback is needed to carry a long-term sustained uptrend.