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Solana (SOL) has experienced a significant price hike as the cryptocurrency surged by 13% over the past seven days. Currently, SOL is trading at about $158, its highest level since August 11. The increase in value, therefore, has directed renewed focus to Solana, which sees the asset approach the major resistance threshold situated at $164.
Current price action indicates strong bullish momentum, implying that market participants are watching carefully to see if SOL will break this resistance or face a pullback.
On-chain metrics indicate that despite recent growths there may be limited upside for this rally. One of them is the decrease in social dominance for Solana which measures how much attention this currency attracts compared to others.
This figure plunged from 4.50% on August 19 to 2.58%, implying that the market’s passion for Solana might be ebbing away. In past cases, such downtrends of social dominance during a bull run often led to exhaustion in rallies that could potentially point toward a downturn.
In addition to the decrease in social dominance, Solana’s weighted sentiment has turned negative. This metric tracks the general feeling about cryptocurrency on social media platforms.
The move towards a bearish sentiment implies that despite recent price increases, market participants may lack confidence in Solana's sustainability of growth.
On the technical front, SOL faces potential resistance at the $163.93 level according to the daily chart. Should this uptrend be repulsed at this resistance point, then Solana’s price is liable to experience a drawdown which might even reach the $150.84 support level.
This zone looks like it has formed a robust support system which could stop further downsides.
On the other hand, on a 4-hour time frame, there is also the “Adam & Eve” bullish pattern characterized by Adam (V-shaped bottom) followed by consolidation forming U-shaped which usually points to trend reversal starts. Meanwhile, SOL has shattered through this pattern’s neckline, implying that if this uptrend remains intact, then the bearish view displayed in the daily chart will become void
However, the wider market situation seems to cast doubt on the durability of this rally despite Solana’s recent price explosion. For instance, its declining social dominance and negative sentiment suggest that the excitement surrounding Solana in the market may be waning.
Equally, resistance at $164 could act as a key examination for current bullish momentum.
If Solana breaks above $164 and closes above it then the next target could be at the $194 level which is another area of resistance. Conversely, if it rejects the price at $164 we may witness a retracement toward the $137 support level or lower. The long-term uptrend for Solana can only be supported if there will be a sustained increase in positive sentiment and social engagement from the market.
