Solana (SOL) Price Analysis: Short-Term Breakout Faces Bearish Pressure

Solana is currently trading above the $210 mark and is looking quite bullish on the lower timeframes. As pointed out in our previous analysis, the $210 mark is an important area of resistance for SOL, and the price needs to break above it with strong momentum to continue its macro uptrend towards higher targets. However, with the overall market struggling and consolidating for the past week or so, a correction for SOL is looking likely in the coming days. Let's take a look at the latest Solana charts to see where the price will be heading in the short term.

Key Takeaways

• Solana is trading above $210 but struggling to flip it into solid support.
• Short-term charts hint at a correction with $200 likely to be retested soon.
• Despite the bullish macro trend, a rising wedge points towards a possible drop to $175.

Analyzing the Solana Charts

If we look at the latest 1-hour charts for SOL, we can clearly notice that the price has experienced a breakout and is currently trading above the resistance at $210. The support level we were watching was the $200 mark, and the bulls have held this area nicely these past few days.

However, if we switch to the 4-hour timeframe, we can notice that the price has been able to break above $210 on lower timeframes before, but the move lacked steam and bulls were unable to flip the area into support. Right now, it seems unlikely that the price will flip this area into support as the short-term Solana price prediction is leaning bearish due to a lack of momentum.

Zooming out further to the 1-day timeframe, the first thing we can notice is that the overall trend still appears to be bullish as the trend of higher highs has not been broken. This is a good sign for SOL and suggests that if BTC manages to gain momentum once again, SOL could also be aiming at higher targets in the near future.

On the other hand, we do have a rising wedge forming on the 1-day timeframe, which is statistically a bearish pattern. Considering the overall market and the fact that a bearish divergence is also playing out here, it is likely this structure will break, and the price will be heading towards the $175 area soon.

Final Takeaway: What is Next for Solana (SOL)?

Solana is currently breaking out on the micro timeframes, but the daily timeframe hints at a correction. Even though the overall uptrend is still intact, a rising wedge is forming on the 1-day charts while a large bearish divergence is also in play. In the short term, a retest of $200 looks extremely likely, and once the price gets there, a sell-off could be triggered due to the rising wedge breaking. The next level to watch would then be the $175 mark.