Solana Price Surges 40% Over Week: Is a Correction In the Cards?

• The Solana price has seen a significant rally of close to 20% over the last 24 hours and 40% over the week.
• The coin has pierced through many resistance levels and is currently trading at a 90% discount to its all-time high.
• Technical indicators suggest that the coin could face a price correction in the short-term, but the long-term outlook remains bullish.

Solana (SOL) has been on a bullish streak lately, with its price surging close to 40% over the week. In the last 24 hours, the altcoin has appreciated by close to 20%, breaching important resistance levels. This surge in price has been attributed to Bitcoin’s price remaining above $20,000 and hence, most altcoins have been showing positive price momentum on their respective charts.

The technical outlook of Solana has also been bullish and the coin is currently trading at a discounted price of 90% to its all-time high, which was achieved in 2021. However, the chart also reveals that the coin has been overbought, indicating that SOL could soon witness a price correction. Despite this, the market capitalization of Solana has been growing, suggesting that the demand for the coin has been at a multi-month high.

The overhead resistance level for the coin is currently at $31, and it is important that Solana remains above the $25 price mark to avoid its bullish momentum from fading. If Bitcoin continues to climb higher, then the coin could present its buyers with good buying opportunities.

Overall, the long-term outlook for Solana remains bullish, although the coin could face some short-term price corrections in the near future. Investors are recommended to remain cautious and watch the coin’s price movements closely to make the most out of the current market conditions.