- Solana surpassed $144 and may experience new selling pressure that will result in a short-term retracement.
- Technical indicators show signs of slowing momentum while investor activity remains strong.
- A further upward breakout above $148 may open the way for more gains while a breakdown below it may drag the price down to $130.
Solana (SOL) broke through the $143 mark on April 22 and was up 5.19% daily amid rising market performance. However, the rally is struggling to sustain itself at the $144 level, which is recognized as the supply zone level on the daily charts.
According to technical indicators, momentum may be fading. The TD Sequential has formed a green “9” candle on the 12-hour chart, which highly suggests a trend reversal or a pullback. Other analysts, such as Ali Martinez, observed the pattern outlined above that might lead to the consolidation phase.
Furthermore, the Relative Strength Index (RSI) is presently at 60.70, close to a ‘overbought’ level. The MACD histogram also flattens, which indicates the weakening of the bulls’ pressure. A minor correction towards the $130-$132 range seems possible unless buyers return to the market at $144.
Inverse Head & Shoulders Pattern Validated
Technical analysts have noted that the signal for the bulls was the successful fulfillment of an inverse head and shoulders pattern that facilitated the breakout. As highlighted by Titan of Crypto, the pattern held out as expected to pave the way for SOL’s upswing move.
Additional support is provided by the Bollinger Bands that indicate a first break above the upper band after several weeks, proving significant volatility along with extending the trend. However, the upper band line is around $147.83 after selling pressure capped the rally in the past. However, this level remains a performance barrier alongside $148.
If SOL breaks out of this resistance, it may reach 150 and even other levels. In the absence of this, CryptoVIPSignal analysts expect the price to drop as low as $114-$120 for more accumulation before additional breakout attempts can be made.
Investor Confidence Rises on Network Activity
On-chain metrics also affirm the bulls’ arguments. Active Solana addresses have increased and are now sitting at the highest level in two months, making it apparent that there is a massive return and influx of users. Higher user engagement leads to higher steady price increases due to investors’ confidence.
Another factor that has influenced the rise of the price is the institutional interest in the coin. SOL assets under management have risen, which indicates that larger players are stepping up their holdings in linked products. Short-term strategies might be bearish with the TD Sequential signal; however, the longer-term outlook remains bullish with the support at the ascending trendline.
The $144 level has emerged as a critical level for bulls and bears in the stock. Getting past this level may signal a continuation of the uptrend while failure to do so may put the price back into a range.
