Solana (SOL) is exhibiting relative strength compared to other altcoins despite recent market pullbacks. Its price movements closely mirror those of Bitcoin, which remains the primary driver for SOL. The previously supportive range ofย $197โ$203ย has now become a potential resistance area. A strong historical support zone exists betweenย $185โ$200, making it less likely for SOL to drop belowย $175โ$185. Recent liquidation events in theย $189โ$192ย range indicate that the market may be overextended, suggesting a potential relief rally could be on the horizon.
Technical indicators show that the RSI recently bounced near the 30 level, signaling a possible buy opportunity for short-term traders. Although Solana has lost key moving averages, including the 20-day SMA, the daily candle's close will be crucial for determining its next trajectory. Currently, SOL is in a neutral zone where both bearish and bullish scenarios remain valid.
If Bitcoin rallies to theย $95Kโ$96Kย range, Solana may rise towardsย $197โ$200, but this level has proven to be strong resistance with recent failed attempts to break above it. The increase in Bitcoin dominance indicates a shift of funds away from altcoins, contributing to fear-driven selling; however, there is potential for a temporary price recovery.
For traders holding long positions, it's advisable to consider taking profits or exiting aroundย $200ย due to its historical resistance. Solana is viewed as a relatively safer altcoin for long positions, but careful monitoring of Bitcoin's trends is essential.
In conclusion, while Solana shows resilience amid market turbulence, strategic entry and exit points are vital for navigating current conditions effectively. Stay tuned for regular updates and analysis through our community channels!ShareRewrite
