Solana (SOL) has shown strength in its price action surging and holding above crucial resistance levels. Top analyst Altcoin Sherpa, however, has warned of a possible price pullback for SOL.
The analyst suggests that a dip could see SOL testing a level that he cites as a key entry point for investors looking to accumulate SOL. This prediction comes as Solana tests resistance levels around $195-$200..
Besides, Altcoin Sherpa’s analysis highlights the significance of current price levels for Solana. The crypto has been consolidating after a notable uptrend, now testing a strong resistance zone.
This area has been challenged before without success, indicating its importance as a potential barrier to further price increases.
$SOL: Still an extremely strong coin but a pullback is probably coming soon? Hard to say if the overall fundamentals (aka meme trading) overcome TA at this point. Some interesting resistance levels up ahead, stay safe.Personally, I think it's best to just be patient and not… pic.twitter.com/sNsAop8u8l
— Altcoin Sherpa (@AltcoinSherpa) July 31, 2024
Support and Resistance Dynamics
The immediate support for Solana appears to be around $180, which has held firm in recent price action. However, Altcoin Sherpa points to $150 as a more attractive entry point.
This level aligns with stronger support on the charts, potentially offering a better risk-reward ratio for traders.
“Waiting for a pullback to around $150 or potentially lower could provide a safer entry for accumulating more SOL,” Altcoin Sherpa noted in his analysis.
This cautious approach reflects the analyst’s interpretation of current market conditions and technical indicators.
Technical Indicators and Market Sentiment
Moving averages paint a mixed picture for Solana’s price outlook. The crypto trades above its 50 and 100 EMAs, suggesting a bullish short to mid-term trend.
Additionally, SOL remains above its 200 EMA, reinforcing a longterm positive outlook.
However, Altcoin Sherpa warns against succumbing to FOMO. The analyst emphasizes the importance of patience, especially given the current technical setup.
This advice comes amid observations of moderate trading volumes as Solana approaches key resistance levels.
Next Big Airdrop?
Notcoin airdrop on Telegram made millions to people. Don’t miss out on the next TG airdrop by the same team – Dogs on Ton!
Show more +Show less –
Read also: Here’s When Bitcoin (BTC) Might Hit a New ATH
Fundamental Factors and Price Status
Altcoin Sherpa acknowledges the potential impact of fundamental factors on Solana’s price.
The analyst notes that meme coin trading and overall market sentiment can sometimes override technical analysis. This observation highlights the complex interplay between technical indicators and broader market trends in the crypto space.
Recent price data from CoinGecko supports the relevance of Altcoin Sherpa’s analysis.
Per price update from CoinGecko at publication, Solana trades at $181.68, showing a 0.68% increase in the last day and a 2.30% rise over the past week. Hence, the prediction of a potential pullback to $150 offers a perspective for those considering entry points soon.
Captain just hit his first 100x among a lot 2-5xs. Want to be a part of a profitable community?Get all our future calls by joining our FREE Telegram group.
We recommend eToro 74% of retail CFD accounts lose money. Visit eToro Now Active user community and social features like news feeds, chats for specific coins available for trading. Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs. Copy trading: allows users to copy the trades of leading traders, for free. User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate. eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
The post Solana Looks ‘Extremely Strong’, But Here’s Why SOL Price Pullback Might be Coming Soon appeared first on CaptainAltcoin.
