Solana (SOL) Breaks Higher, But $136 Wall Could Trigger Pullback

Key Takeaways

Solana surged 11% in a week, trading above major moving averages
Resistance at $136 remains a crucial barrier to further gains
Short-term indicators hint at a pullback toward the $118$109 range

Solana (SOL) is on a bullish run, up 11% over the past seven days and trading at $133.35. The rise has been supported by consecutive higher highs as well as sustained buyers, though the recent run-up is moving toward a key resistance level.

Solana recently rose as high as a 24-hour trading peak of $136.18 before retreating modestly to $135.12, with that representing an intraday increase of 1.31%.

This price between $135 and $135-$136 is where selling pressure is normally ignited, with red candles bunching up near this range. Even though the price is still above such critical moving averages as MA5 up to MA60, the uptrend steam is slowing down.

Analyst Samuel is hinting at a narrowing of moving averages along with declining MACD readings, indicating that momentum is potentially waning except for the possibility of a strong breakthrough accompanied by volume.

Solana volume, as of now, is comparatively mid-level at 28.218 million. Short of a clear break above the level of $136, it could be challenging to sustain. Still, the Parabolic SAR keeps printing below the price, only reinforcing that the larger-scale uptrend remains intact, although perhaps ready for a rest.

Solana Short-Term Pullback in Sight Before Next Leg Up

The one-hour chart is bullish, while short-term prudence is advised. Taking a closer peek into the MACD, a bearish crossover is seen, where the MACD line is moving below the signal line. The histogram is still positive, though the change reflects diminishing upward pressure.

CryptoBullet, another well-known analyst, is indicating that the four-hour chart is providing hints of where the next direction is. He predicts a retracement back into the $118 to $109 region for a higher low.

This level, coinciding with critical support levels, can provide a good entry point for buyers targeting the next mid-term leg higher.

The combination of near-term bearish MACD, resistance at $136, and volume plateau lay grounds for a short-term correction. A healthy decline in said support levels can potentially rebase momentum and entice value-buying entry by otherwise sidelined buyers.

Market Cues Shift to Patience and Timing

With bullish sentiment indicators registering early signs of exhaustion, traders are starting to turn their attention from momentum entries toward strategic patience. In place of chasing near-term highs, market players are looking for improved risk-reward opportunities.

Investor sentiment is increasingly inclined toward waiting for definitive confirmation, a healthy retracement that provides a discounted entry point, or a strong breakout on good volume.

This cautious approach mirrors a larger shift in short-term positioning. Momentum might not be sufficient for now; precision and timing are becoming increasingly important.

Text source: TronWeekly

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