Solana Price Plunges, But Bullish Dynamics Persist

Solana's price has been facing significant bearish pressure, dropping below the psychological barrier at $200. Despite this, the trade dynamics remain bullish, suggesting a potential big move on the horizon. The price has plunged below the $170 level, activating lower targets at $150, but optimism around the token persists. This indicates that the SOL price may be poised for a sudden and quick rebound.

While the SOL price is feared to drop towards the lower range, its decentralized exchange (DEX) volume has been heating up, reaching over $2 billion to $3 billion while the price maintained a consistent descending trend. However, the active address count over the Solana network has dropped from $18.5 million in November to just $8.4 million. In the face of bearish pressure, the SOL price triggered a strong rebound back above $170, temporarily squashing the bearish trajectory.

The recent pullback has turned the Gaussian channel into a bearish one, which continues to flash bearish signals despite the current rebound. Although the relative strength index (RSI) has shown a bullish reversal, the price is expected to remain consolidated within the lower range until the channel turns back to bullish. Therefore, the SOL price is believed to experience equal bullish and bearish pressure in the next few days while the volume could remain below the average.

The current trade setup does not show a large possibility of a breakout beyond $175 in the short term. However, as market sentiments ease, the buying volume is expected to rise, which could further elevate the Solana (SOL) price above the bearish range. Hence, the SOL price continues to remain under bullish influence, regardless of the interim pullbacks.