Will SOL Price Drop to $120? Here's What Solana (SOL) Chart Indicates

Solana faced another rejection at the resistance which suggests the formation of another lower high

Crypto markets are consolidating after a day of substantial gains. However, bulls are facing some challenges, as evident in Solana's (CRYPTO: SOL) price action.

After a recent rally, Solana's price hit a resistance level and was rejected, indicating a potential lower high formation. This technical development suggests a bearish scenario, indicating a possibility of a pullback.

Despite the bearish outlook, bulls could prevent a excessive price decline if they manage to hold the crucial support zone.

What Happened: Solana's price has shown some interesting moves recently, trading within a bearish descending triangle.

After being rejected by the resistance, the formation of a lower high is almost confirmed, indicating the beginning of a pullback.

The buying volume has also decreased, indicating a potential bearish MACD crossover. This technical development could lead the price to drop below its current support zone between $152 and $158.

However, the Ichimoku cloud shows a possibility of a bullish crossover despite the increasing upward pressure on the token.

Both the Lead spans A & B are moving parallel, indicating a divergence may occur in the direction of the volume induced.

So, if the bulls show some strength and manage to cross above $162, the bullish crossover may validate a move up above the bearish pattern.

Otherwise, a drop below $155 could raise some flags and a further drop below $150 may validate a fresh pullback.

This bearish move could drag the levels closer to $125, which is the support of the descending triangle.

If the bulls don't show up, which is unlikely, a strong bearish move could drag the levels below the 3-digit range.

On the other hand, a rebound could keep the Solana (SOL) price within a range that may attempt a bullish reversal further in the coming days.

Despite the bearish scenario hovering over the token, the long-term perspective is bullish, hence selling Solana may not be a good idea.