Solana price has dissipated this week, most likely as a result of profit taking by investors. Nonetheless, SOL continues to enjoy positive sentiment around it. That may provide the impetus needed to trigger another price rally. At the time writing, Solana’s price was 4.5% higher and was trading at $243.91.
Retracement and long term growth prospects
While SOL has recently lost some ground, it is more likely that it is only undergoing a retracement. It is less likely that a reversal is imminent.
Solana’s long-term growth could do with increased institutional investment in the asset. SOL is still seen as a late bloomer. It has only recently broken into the top 10 crypto ranking. Potential institutional investors may have taken note of Solana following its recent rise. However, its stay in the top 5 was short-lived. That may have triggered a cautious approach towards it. More institutions are likely to come in once SOL finds stability in the top 10.
Technical analysis for Solana price
The Solana price action is still trending upward, as shown on the ascending channel. It is likely to remain on the channel. A break outside it may signal either a reversal or anther price rally. The RSI is currently at 63. That signals that the buying momentum is likely to support price gains.
If the bulls sustain the momentum, SOL is likely to rise to encounter resistance at $247.08. However, should it rise further, it could meet the second resistance at $258.59. Beyond that point, SOL could be set for another price rally.
However, if the momentum weakens, it could decline to the first support at $232.76. Beyond that point, the next target is likely to be at $218.80. If it breaches the second support, it will signal an impending downtrend.