Solana Can Rally Over 20% If It Breaches This Level

Over the past few trading sessions, the Solana price has been lacking direction. It is currently showing a bearish trend. The daily chart indicates that SOL has lost almost 4% of its value. Over the past week, it has fallen by 5%, erasing most of its gains due to the recent decline in price.

Additionally, the technical outlook for Solana is bearish. Demand has been falling as buyers have stayed away. SOL also depicted negative accumulation at the time of writing. Although SOL is currently heading in a bearish direction, there is still potential for a rally if it breaks through its overhead resistance level.

However, this will require a return of demand for the altcoin and consistent trading of Bitcoin above the $28,000 mark. Continued consolidation for SOL could lead to a loss of its current support and a subsequent drop in value over future trading sessions. The market capitalization of Solana has also decreased, indicating increased selling pressure on the daily chart.