Solana (SOL) Price Prediction: SOL Poised to Rebound After Trump Memecoin Controversy

Solana price prediction: SOL dipped after Trump memecoin drama, but key technicals hint at a rebound. Will SOL hit $187–190 or correct below

Solana price prediction: SOL dipped from Friday’s brief spike above $181.00, putting some of the key technical levels in play. Is Solana set for a rebound after the Trump memecoin controversy?

Solana (SOL) price fell 3.27% to $171.07 in early Asian trading hours on Friday, May 25, compared to the previous Friday’s brief spike above $181.00.

The weekend’s volatility came after Solana briefly climbed to the 5th largest cryptocurrency, briefly overtaking Binance Coin (BNB), thanks to a politically charged event: the Trump memecoin dinner, which was to be held on the Solana blockchain.

However, the event sparked a round of market jitters and saw a swift sell-off.

But, while Solana is down 3% from Friday’s high, the broader market selloff saw BTC price slip below $105,000, and is now testing the key $104,000 support.

If anything, the crypto market breadth is getting worse, and this could spark more weakness in Solana in the short term.

Solana price technical analysis: 30-minute chart

The 30-minute chart of Solana shows a classic price pullback, with SOL now trading below the mid-term ascending channel from the March 2024 low and the 50-period exponential moving average (EMA) at $174.56.

The MACD is also showing a bearish crossover, with the histogram rapidly expanding to the negative side, which indicates that the sellers are quickly increasing their momentum.

Immediately below the price is a key level of support at $173.06, which is the 38.2% Fibonacci retracement level of the March 2024 low to May 2024 high.

A break below this level could open the door for a deeper decline to the next level of support at $165.50, which is the 50% Fibonacci retracement level.

Further levels of support to watch out for include $159.57 and $153.94.

Key technical levels to watch:

Relative strength index (RSI): 42

MACD : Bearish crossover

If anything, the market is in a knife edge - below $173.06 and it could go lower, above the EMA and a bullish engulfing candle or three white soldiers and it could recover.

Solana price technical analysis: 4-hour chart

The 4-hour chart of Solana shows that the price is still in a bullish trend, despite the recent pullback.

Solana has now pulled back from the 60-day high at $186, which triggered some traders to liquidate their positions. According to Coinglass, more than $14 million in Solana positions were liquidated in the past 24 hours.

However, the majority of traders are still in the black, and the long/short ratios are still optimistic.

Solana derivatives market liquidations

At the time of writing, the funding rates on major cryptocurrency exchanges are largely optimistic, with only Binance showing a slight premium for short positions on BTC and smaller positions for longs.

This suggests that the broader cryptocurrency market is still in a bullish mood, but there may be some signs of fatigue setting in, which could lead to more volatility in the coming days.

Solana price prediction: Is SOL set to rebound?

The recent market selloff has seen Bitcoin price testing the $106,000 again. A break above this level could spark a rally in cryptocurrencies, which could see Solana retest the $187–190 zone, with the next target in mind being the $210 level.

However, a failure to hold the key support at $173–174 may ignite a deeper correction, with the next level of support lying at $170.24 and a deeper one at $160.