The cryptocurrency market is experiencing a phase of consolidation as investors await the next bullish wave. Bitcoin’s price is approaching a critical support zone, expected to provide a strong push towards its much-anticipated milestone of $100K. However, the presence of bears just above $98,000 is delaying this move, which has impacted several altcoins, including Solana (SOL).
Over the past few days, Solana’s price has experienced a 15% drop from its recent highs, signaling a healthy retracement after setting new monthly peaks. This pullback is not necessarily a sign of weakness but rather an indication that Solana may need more time to consolidate before resuming its bullish journey. Traders are now eyeing the psychological barrier at $200, which could act as a significant level of support in the short term.
SOL’s Technical Analysis – Healthy Retracement or Bearish Reversal?
The recent pullback in SOL’s price is largely attributed to the strong resistance zone near $235. According to the Coinglass liquidation heatmap, more than $2.33 billion in long positions have been accumulated at this level. This accumulation has created a “wall” that has prevented the price from breaking above $235, leading to multiple failed attempts. As a result, the bullish momentum has been exhausted, and a period of consolidation is likely to continue.
The technical indicators, however, suggest that this pullback may be temporary. The Moving Average Convergence Divergence (MACD) indicator has shown a bearish crossover but remains within a positive range, hinting at the possibility of a bullish continuation in the near future. Additionally, the Relative Strength Index (RSI) is still trading along an ascending support line, and a rebound here could validate the potential for a rise beyond the current resistance levels.
Solana’s Path to $300 – What to Expect
Given the current technical and on-chain readings, Solana’s price is expected to test the pivotal $235 level again, where the accumulation of longs may eventually clear, leading to a pullback. This pullback could take the price towards the 0.618 Fibonacci level, around $210. However, the volume data suggests that once this short-term resistance is overcome, a bullish breakout could take place, pushing SOL’s price past $240.
Long-term projections for Solana remain highly optimistic, with the price potentially moving towards the $300 mark. The broader market sentiment remains bullish, and once the short-term retracement is complete, SOL could see significant upward momentum as it benefits from Bitcoin’s anticipated rally.
In conclusion, while Solana is currently facing strong resistance and a healthy retracement, the overall technical outlook suggests that the bulls remain vigilant. As long as the price holds key support zones, especially around $200 to $210, the long-term price action remains extremely bullish, with the $300 target still firmly in place.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Solana Price Plunges 9% Amid Crypto Sell-Off – Market Cap Drops $119B In 24 Hours
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