Solana Price Faces Pullback After 200% Rally

Solana’s SOL token has plunged 7% today to around the $54 mark after a strong multi-week rally of over 200%. According to technical analysis by altFINS, this pullback is expected after SOL broke out from a Falling Wedge pattern and rapidly rallied to hit resistance around the $60 level.

Although the trend remains firmly bullish across short, medium and long-term timeframes, there are signs of short-term exhaustion. The MACD indicator recently formed a bearish divergence with price making higher highs but the MACD line failing to follow suit and instead moving lower. This divergence often precedes a correction.

The key support zone for SOL now sits between $47-50, which aligns with the 38.2% and 50% Fibonacci retracement levels of the recent uptrend. This area may offer an attractive swing trade entry opportunity for traders looking to ride the next leg higher.

Source: altFINS – Start using it today

If support around $47-50 fails to hold, the next major support zone sits around $38 which marked the breakout point from the Falling Wedge pattern. As long as SOL holds above this level, the uptrend can still be considered intact.

On the upside, SOL faces resistance zones at $60 where it recently topped out, followed by the psychologically key $80 level. A break above $60 would likely see acceleration towards $80.

So in summary, SOL remains in a firmly bullish uptrend across all timeframes, but a healthy pullback looks to be underway to allow overbought pressures to ease. $47-50 marks an important support zone for bulls to defend.

The post Solana (SOL) Price Takes A Well-Deserved Breather After Explosive 200% Rally, But Bulls Remain In Control appeared first on CaptainAltcoin.

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