- Bullish breakouts may occur if buyers successfully retake the $19.76 level.
- The decline in the SOL price follows a falling channel pattern, with lower highs and lows.
Total Value Locked (TVL) in the Solana ecosystem has increased recently, yet DEX volumes have dropped significantly. Given the importance of these numbers to a DeFi network’s health, the decline in DEX activity in Solana’s DeFi landscape has sparked some worry.
SOL’s price had shown surprising resilience and recovered at a rapid pace this month. Even more intriguing is the fact that the surge had taken place amid concerns that FTX may liquidate a significant amount of SOL tokens. SOL has seen an unexpected influx of investor interest, which bodes well for the token’s price.
Bears Regain Control
However, the SOL price experiences a downward trend, culminating in a death cross, if it is unable to maintain a positive trend above $20. In addition, the decline in the Solana price follows a falling channel pattern, with lower highs and lows occurring at regular intervals.
Although the SOL price did rebound by 12% a few weeks back, the bears have since regained control. A short-term range, consolidation, and further climb in SOL are the best case scenario for bulls for now. At the time of writing, SOL is trading at $19.20, down 0.70% in the last 24 hours as per data from CMC. Moreover, the trading volume is down 4.38%.
Bullish breakouts may likely occur if SOL price successfully breaches the $19.76 level. If the price breaks out to the upside, it will likely test the $20.50 resistance level. On the other hand, if the price breaks below the $18.70 support level then it will likely decline all the way till $17.50 mark.
