The bulls have conquered the cryptocurrency space as the tokens have risen beyond their respective resistances due to the notable rise in market capitalization. Bitcoin price is approaching the important resistance level of $39,000, while other altcoins continue to consolidate within this range. Meanwhile, Solana price is consolidating significantly below the key resistance level at $61.49, indicating both a bullish breakout and a possible bearish breakdown.
Volatility appears to have decreased both in the short and long term, which has allowed prices to trade within a tight range. SOL prices are expected to deviate from current levels to make up for inefficiencies. Of course, it is also possible to withdraw with $55.
Considering the Bollinger Band formation, SOL price appears to have taken the middle band as a strong support base. Moreover, as the price starts to fall, the upper and lower bands are moving in parallel. Even with decent volume, reduced volatility can harm the price. Now that price appears to be in a dilemma, a little analysis can provide some clarity. A slight decline below the mid-band could activate market participants who currently remain passive or have shifted their focus away from the token.
The new day’s trading started on a bullish note, with the price heading higher to test the upper band that could occur after clearing the pivotal resistance near $62. Additionally, a significant selloff could be in progress as levels around the upper band at $63.5 could be broken by weakness. If the bulls show strength and hold the price above $60, a bounce could break through this level and prove the start of a new uptrend.
However, there could soon be a significant uptick and the price could soon cross triple digits.