The Solana price, currently $47.71, +10.40% on the day, may have just done enough for the moment as the short-term technicals point lower.
Since its launch in March 2020, the rapid appreciation in the Solana price has seen the newcomer leapfrog many of its more established peers to propel itself to the rank of 15th most valuable cryptocurrency, achieving a market cap of close to $13 Billion in the process.
Designed to offer solutions in both decentralized App (DApp) creation and decentralized finance (DeFi), Solana sits well-positioned, as both industries experience a period of incredible growth.
At its current $47.71 level, the coin has returned holders 231% since March 2020.
The prospects for the Solana price look promising. However, there are signs the coin may retrace from the current peak, offering buyers a better entry point.
Solana technical outlook
In today’s early Asia session, Solana hit a new all-time high of $49.96. The rally failed at the top end of its recent ascending channel and the psychological $50 barrier.
The 4-hour chart highlights the formation, which offers resistance on the upside. The trend line links the previous all-time high at $48.51, from the 25th of April, with yesterday’s $49.90 top. Today’s high print confirms the trend.
This failure to break the channel on the upside, provides a short-term selling opportunity, targeting the lower end of the ascending channel at $41.75.
However, clearance of the $50.00 resistance would invalidate the bearish view and likely see prices extend further into new territory.