Solana (SOL) Pulls Back from Highs – Is a Major Correction Looming?
Solana's recent rally hits a speed bump as SOL retreats from recent peaks. The high-performance blockchain's token shows signs of cooling off after its explosive run.
Market Momentum Shifts
Traders watch closely as selling pressure builds around key resistance levels. The pullback follows SOL's impressive climb that had crypto enthusiasts buzzing about another potential breakout.
Technical Indicators Flash Warning
Key support levels now face their first real test since the latest bull run began. Volume patterns suggest some profit-taking is underway—because nothing says 'I believe in decentralization' like taking profits at the first sign of turbulence.
What's Next for SOL?
The network's fundamental strengths remain intact, but short-term sentiment appears to be shifting. Whether this dip represents a healthy correction or the start of something bigger remains the million-dollar question—or in crypto terms, the question that could cost you a million dollars if you guess wrong.
Solana Price Dips Below Support
Solana price started a decent increase after it found support near the $212 zone, beating Bitcoin and Ethereum. SOL climbed above the $232 level to enter a short-term positive zone.
The price even smashed the $240 resistance. The bulls were able to push the price above the $245 barrier. A high was formed at $250 and the price recently corrected some gains. There was a MOVE below the 23.6% Fib retracement level of the upward move from the $200 swing low to the $250 high.
Besides, there was a break below a bullish trend line with support at $242 on the hourly chart of the SOL/USD pair. solana is now trading below $240 and the 100-hourly simple moving average.
On the upside, the price is facing resistance NEAR the $238 level. The next major resistance is near the $240 level. The main resistance could be $245. A successful close above the $245 resistance zone could set the pace for another steady increase. The next key resistance is $255. Any more gains might send the price toward the $262 level.
More Losses In SOL?
If SOL fails to rise above the $240 resistance, it could start another decline. Initial support on the downside is near the $232 zone. The first major support is near the $230 level or the 50% Fib retracement level of the upward move from the $200 swing low to the $250 high.
A break below the $230 level might send the price toward the $224 support zone. If there is a close below the $224 support, the price could decline toward the $220 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is losing pace in the bullish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $230 and $224.
Major Resistance Levels – $240 and $245.
