Solana is one of the altcoins with the highest bullish potential, but it could respect its current resistances and suffer corrections. The RSI is showing bearish signals and is in overbought territories after hitting a double top.
Although the cryptocurrency market is in the midst of a bullish boom, the big player is Bitcoin. Much market capital is in BTC, but it will undoubtedly continue to migrate from altcoins for a few more days. Meanwhile, the prices of some leading altcoins, such as Solana (SOL) and Ether (ETH), will suffer considerable declines, corrections, and sideways trends.
Those are some of the main aspects to consider when analyzing the market behavior of Solana. SOL is trading at around USD 190 while it has accumulated a 20% profit in the past week, according to CoinGecko.
Factors That Could Be Hindering the Rise in the Price of Solana
One of the aspects that could be holding back the price of Solana is the amount of money that is migrating from altcoins to Bitcoin. That aspect affects not only SOL but also the rest of the altcoins, which will remain bullish. That situation will continue on the days when BTC tests its most recent all-time high.
However, the competition from Ether continues to gain ground in the cryptocurrency market, showing its full potential. The latest announcements on Twitter show that there has been a clear evolution in the DeFi sector.
The growth in recent months indicates that Solana is one of the altcoins with the highest bullish potential. However, it could respect its current resistances and suffer corrections, as the market situation favors Bitcoin. Therefore, it is sure that BTC will capitalize on the profits of the altcoins.
Analysis of the Price of Solana in the Short Term
Solana recently reached significant resistance and will have to break through it to hit a new all-time high. However, money is migrating from altcoins to Bitcoin, which would cause a prolonged drop in the prices of altcoins in the coming days.
The RSI is in overbought territories and shows a bearish trend after hitting a double top. Meanwhile, the ENV channels suggest a correction as the candlesticks did not respect the upper margins, besides marking significant supports. The first of those indicators stands at USD 196 and the second at USD 190.
The former is going through a testing process, but the bulls have rejected it in the last hours. Therefore, a rally to the resistance at USD 210 is likely.
At that point, there could be new profit taking by traders, leading to the abovementioned supports.
The correction process could drag on for a few more days until reaching the last support between USD 175 and USD 170. From there, the bulls should start to take control and drive the price of Solana to the nearest resistance. The only obstacle to this would be that there would be more intense selling pressure on the holders.
By Alexander Salazar
