Solana struggles to break key resistance levels amid market volatility

At the beginning of 2024, Solana (CRYPTO:SOL) encountered significant challenges in surpassing critical resistance levels. 

In August, Solana made two attempts within 30 days to exceed the $160 mark amid a rising cryptocurrency market. 

However, both attempts failed. 

Despite these setbacks, there is speculation of a potential recovery as investor confidence in an upward trend begins to grow. 

Nonetheless, concerns remain about a possible decline to $126, raising uncertainty in the market. 

Based on market commentary, investors trading Solana have been preparing for a potential price drop. 

The funding rate for SOL turned negative on August 28, indicating expectations of a decline toward the $126 level. 

This shift in sentiment has raised concerns, especially considering the recent consolidation of Solana's price between $126 and $160. 

Many traders view this range as an opportunity for short-term movements, but the broader price outlook remains uncertain. 

Technical indicators such as the Relative Strength Index (RSI) suggest that the downtrend may be intensifying. 

Historically, RSI values have shown reversals from similar ranges, indicating a potential decrease in selling pressure. 

A reduction in sales could signal a price recovery for Solana. 

However, even if the RSI for Solana falls into the oversold territory, it does not guarantee an immediate rebound. 

Close monitoring of market conditions is essential. 

After failing to surpass the resistance level at $160, Solana’s price dropped by more than 20% over the last eight days. 

Based on recent market movements, this drop suggests that SOL might retest the $126 level before any significant upward movement. 

According to historical data, the $126 region has served as a foundation for substantial bounces. 

However, the recent inability to surpass the $160 resistance level, as noted by market analysts, could indicate a more severe decline this time. 

Since mid-April, Solana has experienced numerous fluctuations between the $126 and $160 levels. 

Some analysts believe that breaking this range will require a significant movement in the broader market, particularly from Bitcoin (CRYPTO:BTC). 

Should SOL recover and rise above the $160 resistance level, it could pave the way for an increase toward $169. 

Conversely, failure to break this level may result in another decline to $126.

At the time of reporting, the Solana (SOL) price was $134.30.