Solana Price Analysis: SOL Corrects 14% From $188 High and Consolidates at Current Support. What Next?

Solana recorded a bullish rally for three-quarters of May. Often termed as Ethereum killer, Solana has gained by 39% in the last 30 days, according to data from Coinmarketcap at the time of writing. But despite recording that much, it has traded almost flat in the last 24 hours, with its current market price at $167, which is 0.07%. Its market cap still is at its normal 5th spot, currently at $76.6 billion, while its volume has dropped by 10% in the last 24 hours to read at $2.22 billion. 

However, the May bullish rally hasn't been without its rough side, as SOL has corrected by about 14% from its recent high of $188 recorded on  May 20th.

From a low of 118 recorded on 1st May price has rallied 58% to the recent high of 188 recorded on May 20th  and got rejected at a descending trendline.Since the rejection on 20th May SOL has been facing bearish pressure. Today 1st of June, SOL is currently trading at a Support level, a 14% decline from the 188 high.

But can this support level hold against further declines? Can it get rejected and target the $200 level or will it drop lower to the demand zone below the current market price?

Below the current market price, there is a demand zone yet to be tested and an ascending trendline that has been in play since late November 2023. 

If prices can drop to the double support level of the demand zone and the 6-month ascending trendline at around $145, that level could prove too strong to break lower, keeping in mind the recent Solana ecosystem developments.

But then again, If the bulls can defend the current support level at around $165, next target would be at the descending trendline that has rejected price above it for three consecutive times,  2-month descending trendline. A strong breakout would drive prices to the $200 level and beyond.

How about its Technical indicators?

Solana is trading close to several key moving averages. While the token is above both the 50-day Exponential Moving Average (EMA) of $152 and the 100-day EMA at $157, it has maintained a good distance above the more substantial 200-day EMA at $122, offering a potential support base in the lower zones.

The CMF indicator which measures buying and selling pressure, is currently at the neutral 0 level on the daily timeframe. This equilibrium suggests a period of consolidation, as the amount of money flowing into the asset is equal to the outflow, potentially leading to a stabilization phase without significant upward or downward momentum until a new market catalyst emerges to shift sentiment.

The RSI also backs up this consolidation phase while reading at 53, a neutral reading showing neither the buyers nor the sellers have control of the market currently

June Forecast

Looking ahead as we start a new month, June appears favorable for Solana, according to projections from Coincodex. The platform predicts that SOL could gain 15% by end of June establishing a new high from the previous $188 and trading at the $191 level.

Backing up the bullish outlook,  Coincodex technical indicators suggest a positive outlook, with the Fear & Greed Index reading at 72, firmly in the "greed" territory. Solana has recorded 14 out of 30 which is 47% green days over the last month and with a price volatility of 9.77%  indicative of its recent upwardtrend.