Solana (SOL) Price Analysis: Retracement Incoming as Memecoin-Fueled Rally Reminiscent of Ethereum\'s 2021 Bull Run

Solana [SOL] is undoubtedly one of the best performing top cryptocurrencies so far this year. Its performance in the last two weeks confirmed that it was still in the group

Solana (CRYPTO: SOL) has been one of the best performing top cryptocurrencies so far this year and its performance in the last two weeks confirmed that it was still in the running, but a retracement might be on the cards.

SOL pulled off a robust bullish performance in the last two weeks that saw it rally as high as $187.15 during the weekend, marking a 52% recovery from its current monthly low. While the current performance indicated that bulls were leading the narrative, AMBCrypto also encountered signs of a potential retracement along the way.

Solana’s price performance during the weekend signaled that it managed to break out from a 4-month descending resistance, however, it has now entered another resistance zone ranging between the $180 and the $200 price points. Notably, SOL had previously shown resistance at the same levels, making it a zone to watch over the next few days.

Solana did manage to extend its upside well above the descending resistance. However, this could also present a potential induction level where shorting is likely to play out.

Moreover, indicators corroborated the signs of a potential pullback. For instance, the RSI briefly entered the overbought zone before the 3.41% correction was observed in the 24-hours at the time of writing.

The resistance zone, coupled with a substantial number of traders, highlighted the likelihood of profit-taking. A look at SOL’s Open Interest heat map revealed a zone of interest within the $184 price level.

Consequently, the price did take a dip after failing to sustain bullish momentum above that range.

Solana’s short-term outlook suggested that a retracement might be taking place, however, the coin might be setting itself up for a more bullish future. Now that Ethereum (CRYPTO: ETH) ETFs have been approved, Solana is the next major candidate.

Solana’s memecoin-fueled rally this year, as well as congestion, are reminiscent of Ethereum’s performance during the 2021 bull run.

Is your portfolio in the green? Check out the SOL Profit Calculator here.

BODEN takes a hit

Elsewhere in the Solana ecosystem, an interesting phenomenon was observed. The Jeo Boden (CRYPTO: BODEN) memecoin tanked by almost 60% after U.S. President Joe Biden announced that he will bow out of the presidential race.

The memecoin’s price reacted to the news of President Biden’s exit from the race, highlighting the rapid pace at which real-world news has an impact on crypto assets.

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