Solana (SOL) has struggled to maintain momentum, facing rejection at its bull market support band. Expert analyst Benjamin Cowen shared on X that SOL is experiencing repeated rejections, hinting at bearish sentiment. According to Cowen, Solana behaves like a more volatile version of Ethereum (ETH) and may fall back into its prior wedge formation, similar to ETH’s recent price movement.
Rejection and Resistance Levels
The bull market support band, composed of two moving averages, typically the 20-week and 21-week EMAs, represents medium-term market trends. SOL has repeatedly failed to break above this band, reflecting strong resistance at these levels. The price is now hovering near $125.19, a significant point considering the rejection at the $190 level in July. This key resistance has pressured the price downward, and a possible decline may lead SOL toward critical support levels, particularly around the $50–55 range.
Potential Return to the Wedge Formation
Solana had previously broken out of its rising wedge pattern, signaling bullish momentum. However, recent price action indicates that SOL may fall back into this wedge formation if the current resistance continues to hold. The wedge’s bottom support is around $50–55; if the price declines further, this could be a significant support level. If Solana follows Ethereum’s pattern, as suggested by Cowen, it could retrace back into this wedge, potentially testing lower price levels in the coming weeks.
Solana Whale Loses $5.5M in $19.5M Transaction; SOL DipsVolume Concerns
Notably, concerns regarding Solana’s price movement have amplified a decline in trading volume on its chain. Crypto Rover, a YouTuber, highlighted this issue, pointing to a decrease in volume that raises sustainability concerns for the SOL token.
At press time, Solana was trading at $126.95, down 5.97% in the last 24 hours and 13.90% over the past seven days. With a circulating supply of 470 million SOL and a market cap of $59.27 billion, traders are closely watching the next move as volatility affects Solana’s market position.
