Solana price shows signs of a weakening countertrend. Key levels have been defined.
Solana price might fail soon
Solana price may be signaling the beginning of yet another round of liquidity hunts as this week’s uptrend may come to a screeching halt. The bulls have recently breached the 21-day and 8-day exponential moving averages leading retail traders to consider opening a long position upon the pullback. However, the Relative Strength Index shows a laggard reading, suggesting the uptrend move is more exhausting than meets the eye.
Solana price is currently trading at $34.00. After losing ground twice since May 2022 on the RSI, the centralized smart contract token has climbed back into the supportive territory. Still, the resistance witnessed at the current time shows a subtle bearish divergence between the September 17 high at $33.81. Essentially the indicator deems the current SOL price is more overbought than the previous countertrend rally, which also failed. Additionally, the volume profile indicator indicates that the bears are in full control. The bulls have yet to deliver a counterpunch of equal or greater value to the largest candle within the downtrend rally.
Combining these elements, history is likely to repeat itself and bring the self-proclaimed Ethereum killer down to lower prices. This thesis will stay bearish (with targets at $25 and potentially $20) until the $38 level is crossed. If the $38 barrier is breached, a challenge of the August high near $48 has a decent probability of occurring. As a result, Solana could climb as high as 50% by invalidating the bearish thesis.