Solana (SOL) price reached a high of $213 earlier on Monday, but has since pulled back to hover around $200.

In the past 24 hours, SOL has dropped more than 3% due to profit-taking across the market. Can the bulls maintain their advantage and set a new all-time high, or will a drop below $200 give the bears dominance?

Bitcoin has fallen below $112,000, and Solana's price is expected to break through $200.

In the past month, the market has seen Solana's price break above the key psychological level of $200 twice.

However, the bears formed a strong supply barrier around $210, leading to subsequent sell-offs after the initial drop, pushing SOL down to around the $175 support level.

At the time of writing, the altcoin is trading close to $199, and buyers must reclaim the psychological level; otherwise, they face the risk of further losses.

Bitcoin has fallen to around $111,600, and Ethereum has dropped from its historical high of over $4,800 to around $4,600, which is not a good sign for Solana.

The sell-off of the two major cryptocurrencies may accelerate profit-taking in smaller coins.

Solana Price Prediction: Is the next target for SOL to set a new high?

Technical indicators, including MACD and RSI, suggest that bullish momentum may continue.

However, the daily RSI is around 57, slightly trending down, while MACD maintains a bullish crossover outlook, but the histogram shows momentum is weakening.

In this scenario, a pullback could weaken SOL's ability to hold above $200, allowing sellers to target $175 and $160.

Nevertheless, news of stablecoin adoption, ETF sentiment, and overall market conditions may help the bulls.

Reports indicate that Galaxy Digital, Jump Crypto, and Multicoin Capital plan to invest $1 billion in Solana, enhancing bullish sentiment.

In addition to Solana Financial Company, another factor is the $1 billion acquisition of SOL.

The upcoming Alpenglow upgrade aims to reduce transaction completion times to 100-150 milliseconds, which is another positive factor set to be launched later this year.

Coinglass data shows that open interest in SOL futures has decreased by 2.69% to $12 billion, indicating that investor confidence is waning despite strong performance.

As the price retraces its latest gains, Solana's total locked value (TVL) in decentralized finance protocols has also decreased.

Despite the possibility of a pullback to the $175 support level, if the bulls hold above $190 and quickly reclaim $200, they can prevent a severe impact.

If this happens, a combination of institutional interest and support, technical strength, and regulatory changes could boost SOL holders.

Analysts believe that breaking above $211 in the short term is key.

The bulls may challenge Solana's previous high of $294 and aim for a peak of $500.