Solana (SOL) sparked a massive rally throughout November and early December, with gains exceeding 490% and the SOL price rising to $125.65.

Since that peak, however, SOL has struggled to regain momentum, prompting some investors to wonder whether the token’s rally is finally over.

Solana drops back to $105 as momentum wanes

SOL closed lower for three consecutive days and is currently trading around $105.80, down 16% from Monday.

The pullback comes as trading volume and hype have cooled after a buying frenzy over the past 12 weeks.

From a technical perspective, Solana was significantly overbought by mid-December.

The RSI peaked above 85 on the daily time frame, indicating that a pullback is imminent.

Now that the RSI has normalized to 65, SOL may find support near $100, which is seen as an important support level.

If the bearish trend continues, SOL’s 50-day exponential moving average (EMA) near $75 may act as support.

Solana falls , Binance Coin (BNB) surpasses SOL in market capitalization to become the fourth largest cryptocurrency in the world.

Daily spot trading volumes also took a slight hit - a sign investors are reassessing their positions.

Now that the RSI has normalized to 65, SOL may find support near $100, which is seen as an important support level.

If the bearish trend continues, SOL’s 50-day exponential moving average (EMA) near $75 may act as support.

Solana falls , Binance Coin (BNB) surpasses SOL in market capitalization to become the fourth largest cryptocurrency in the world.

Daily spot trading volumes also took a slight hit - a sign investors are reassessing their positions. #criptovalute $ETH $BNB $BTC #bitcoin #blockchain #crypto #cryptocurrency