Solana (SOL) is currently trading at $146.02, showing a minor decline of 0.84%. Despite this, the coin is holding a solid 24-hour trading volume of $2.11 billion, up 41.74%. Over the past week, Solana has seen a slight pullback of 0.33%, keeping traders cautious. The asset has experienced a rally recently, but the trend appears to be consolidating, with signs of distribution emerging at higher levels.
SOL is consolidating within a tight range, bouncing between key support and resistance zones. The $141 support has been holding strong, while $146 remains a critical resistance level. The recent behavior of Solana indicates a battle between bulls and bears, with both sides defending their territory. Institutional interest remains evident, and the decreased volatility hints at an impending price movement.
Solana shows signs of losing bullish strength
Solana’s technical indicators point to a cooling of bullish momentum. The Relative Strength Index (RSI) has dropped slightly from 60 to 55, signaling a loss of buying power. The MACD, often seen as a leading indicator, has shown a bearish crossover, signaling a potential downward trend. The coin has been struggling to break through the 100-day simple moving average at $154, which is acting as a tough ceiling.
Despite the pullback, some traders remain optimistic. One trader, Hardy, spotted a classic bull flag pattern on the 4-hour chart, a sign of potential bullish continuation. However, the overall sentiment is currently bearish, with price action being choppy. Solana will need to push past key resistance levels, including the psychological $170 mark, to regain upward momentum.
Solana’s long-term potential and $200 target
There are potential trading opportunities for price observers who are watching Solana, particularly for range-bound investors. The price is at the moment resting on top of the key $141 zone of support and is poised to bounce if and when it declines again. Yet, breaking through the price level of $146 may be better for the long side. It is best that conservative investors hold off for confirmation at the level of $148 for an unmistakable breakout.
That being said, risk management is still the name of the game. A close below $140 on a daily basis can undo the bullish expectation, and short selling is unwise unless the price falls below the level of support. For the long-term oriented, the potential rally in Solana to $200 and higher still has life, but that is still contingent on breaking through various resistance areas.
