We explore whether a pause to the recent SOL bull rally is starting, as well as the possibility of profit-taking.
- SOL price blasted through 4-month resistance line, but bulls might be taking a break soon. BODEN reacted to news about President Joe Biden’s plan to exit the political scene and presidency.
Solana [SOL] is undoubtedly one of the best performing top cryptocurrencies so far this year. Its performance in the last two weeks confirmed that it was still in the group, but a retracement might be on the cards.
SOL pulled a robust bullish performance in the last two weeks that saw it rally as high as $187.15 during the weekend, a 52% recovery from its current monthly low.
While the current performance indicated that bulls were dominant, AMBCrypto also saw signs of a potential retracement along the way.
SOL’s performance during the weekend signaled that it managed to breakout from a 4-month descending resistance.
Nevertheless, it has now entered another resistance zone between the $180 and the $200 price range. Note that it had previously shown resistance within the same range, hence this is one zone to watch in the next few days.
Source: TradingView
SOL did manage to extend its upside well above the descending resistance. However, this could also present a potential induction level where shorting is likely to play out.
Indicators also corroborated the signs of a potential pullback. For example, the RSI briefly entered the overbought zone before the 3.41% correction observed in the 24-hours at the time of writing.
The resistance zone, coupled with a substantial number of traders, highlighted the likelihood of profit-taking. A look at SOL’s Open Interest heat map revealed a zone of interest within the $184 price level.
Consequently, the price did take a dip after failing to sustain bullish momentum above that range.
Source: Hyblock Capital
What does Solana’s future look like?
Solana’s short-term outlook suggested that a retracement might take place. However, the coin might be shaping up for a more bullish future.
Now that Ethereum [ETH] ETFs have been approved, Solana is the next major candidate.
Solana’s memecoin-fueled rally this year, as well as congestion, are reminiscent of the Ethereum’s performance during the 2021 bull run.
Is your portfolio green? Check out the SOL Profit Calculator
BODEN takes a hit
Elsewhere in the Solana ecosystem, we observed an interesting phenomenon. The Jeo Boden [BODEN] memecoin tanked by almost 60% after U.S. president Joe Biden announced that he will bow out of the presidential race.
Source: CoinMarketCap
The memecoin’s price reaction to the news of President Biden’s exit highlighted the rapid pace at which real-world news have an impact on crypto assets.
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