NEW DELHI (CoinChapter.com) — Solana (SOL) shows bullish exhaustion. It could correct lower by 10-15% before the bulls aim a fresh surge to $142.
Solana Price Outperforms Bitcoin
In the last Solana price analysis, we discussed how the SOL price could accelerate higher. The price did gain bullish momentum after it broke the $70 level. It even cleared the $80 and $88 levels. Finally, the price pumped over 50% in a few days, outperforming Bitcoin.
A new multi-week high was formed near $126.66, and the price shows a few signs of a short-term top. The price is slowly moving below the $120 level but still well above the 50-day simple moving average (blue).
If the SOL price decreases, some bids might be near the $108 level. It is close to the 23.6% Fib retracement level of the upward move from the $51.30 swing low to the $126.66 high.
The current price action and technical patterns suggest that there could be an extended decline toward the $100 region. The main support is now forming near the $88 zone. A crucial bullish trend line is forming with support at $88.50 on the daily chart.
The trend line is close to the 50% Fib retracement level of the upward move from the $51.30 swing low to the $126.66 high. A downside break below the trend line could send SOL price toward the 50-day simple moving average (blue) at $70, where the bulls might take a strong stand.
Conversely, Solana bulls could protect $108 or $100 and aim for a fresh increase. On the upside, the bulls might face resistance near the $120 level. The first major resistance sits at $125.
A clear upside break above the $125 resistance could fuel another rally. The next stop for the bulls might be near $132, above which SOL might accelerate higher toward the $142 barrier in the coming days.
Overall, the SOL price shows a few bearish signs from $125. It seems like Solana might correct lower toward $100 or even $88 before it starts a fresh increase. The next major resistance on the upside sits at $142.
