Solana (SOL) has shown a significant price increase, surging by 40% to hit $210. Despite this positive trend, the cryptocurrency is currently facing challenges at a resistance level of $221, suggesting a possible price reversal ahead.
The Solana network has witnessed an increase in transaction activity amidst the price rally, reaching a yearly high in transaction counts, though this boost is less than expected given the recent enthusiasm around Solana ETFs and the overall bullish market sentiments.
There are concerns that the rally might not be sustainable if Solana cannot continue to draw in more user engagement. As the broader market cues stabilize, maintaining this momentum may become increasingly difficult for Solana without active investor involvement.
Solana continues to show strong macro momentum, supported by technical indicators such as the Average Directional Index (ADX) standing at 32, indicating a strong continuing uptrend.
Despite holding above a support level of $201, Solana is struggling to break through the $221 resistance, a hurdle that prevents the price from moving towards the next target of $245.
The current mixed sentiment points towards potential short-term range-bound trading between $201 and $221 unless significant market shifts occur.
If investors decide to realize profits, Solana could fall below the crucial $201 support. Such a move would invalidate the current bullish-neutral stance, potentially driving SOL to lower levels around $186.
