Solana (SOL) has been on a bullish rally in recent times with the coin surging over 26% over the last month. However, the building momentum to the $200 price level seems to be cooling off as depicted by technical indicators. In fact, on the weekly time frame, Solana has recorded a dip of over 2% confirming the slow down. 

In spite of the momentum cool-down, Solana is still topping all other chains in the weekly decentralized exchange (DEX) volume. This suggests that the blockchain is an investor-favorite as it continues to assert its dominance over other chains. 

Technical Indicators Show Cool Off In SOL’s Momentum

Solana is on a bullish momentum towards $200. However, with the coin now retreating after reaching as high as $184 just 4 days ago shows a drop in momentum. The RSI and MACD indicators of SOL, further support the drop in momentum. 

On the day, the RSI sits at 57.08 dropping from 64.96 over the last three days. The decline from the intermediate high suggests that buying momentum is dwindling. Although the RSI remains above 50, it is now catching its breath from the previous high, indicating the upward momentum is waning. 

On the other hand, the MACD shows that Solana’s momentum is shifting. At the moment, the MACD line sits at 8.51 below the signal line at 8.66, signaling a bearish crossover. Typically, this indicates that a short-term pullback could be on the horizon. Furthermore, the histogram is also negative with red bars. This means the bullish momentum is slowing and could be in favor of sellers.

Although the overall SOL market is still bullish, the drop in the RSI and the bearish MACD crossover indicate a consolidation or stronger pullback could be looming. Traders should watch for clear signals or brace for a drop in the price of Solana.

Solana Tops DEX Chains With $27.9B Weekly Volume

For the fourth straight week, Solana has ranked highest among major blockchains in the amount of assets traded on decentralized exchanges (DEXs). As per DefiLlama analytics, Solana recorded a total of $27.9 billion in DEX volume over the last seven days. This puts it ahead of BNB Chain, Ethereum, Base and Arbitrum.

Solana’s weekly trading volume increased by 45.78%, pointing to a resurgence in activity following a low period in March and April. As of now, the DEX volume on the network has stayed above $20 billion for one month straight.

Additionally, Solana is also growing in app fees and revenue. Data by DefiLlama shows that out of the top ten most fee-generating applications and networks this week, four are based on Solana. 

SOL Must Surge 20% to Reclaim $200

As per the daily chart on TradingView, SOL is currently trading at $165.98. For the coin to surge to $200, it must pump by 20.35%. But, the coin is facing strong resistance at $184 level. Clearing this resistance level is crucial to chart the way for Solana’s price to reach the psychological $200 mark. 

However, if SOL fails to hold the current price level, a further drop could follow. The coin currently has support around the $151 price level. If this level is breached, a deeper drop towards the next support at $132 could occur wiping out all gains. 

Despite the broader Solana structure still leaning bullish, traders must be cautious moving forward. The trajectory of Solana depends on whether bulls will regain control or bears will continue to push the price lower.