Briefly –
- Solana appears to form a rounding top, indicating a near-term downswing.
- Failure to create a higher high over the 24 August high near $79.58 will authorize bearishness.
- If Sol overpowers resistance at $82.93, the coin might move higher to $100.
Solana (SOL) has led the gainers with exponential bullish moves that started in 2021 mid-August. However, the asset’s upswing seems to form a reversal shape, indicating incoming price declines.
SOL at Inflection Zone
Solana had its price rising by 88% between 15 August and 21 August. The actions had to SOL surging to $81.9 from $43.43. Though the coin experienced an exponential uptick, the Solana token appears to form higher lows and higher highs since 17 August. However, the 24 August sell-off registered a lower low, indicating a possible rounding top forming.
If Solana loses the support level at $58.5, it might plunge to $48.68, then $44.14. To nullify this bearishness, SOL will need a decisive four-hour candle close over $74.86.
On the other side, if the crypto registers a higher high of the 24 August surge near $78.58, SOL will confirm another uptrend.
For now, traders need to observe the creation of the following swing point.
If the coming sessions see bulls flipping the 161.8% Fib extension at $82.93 as the token’s support, the asset will magnify its chances of an 18% surge towards the 200% Fib extension around $98.03. Such price actions would have the price touching the psychological zone at $100 in some cases.
As much as Solana’s price appears indecisive, the total cryptocurrency market retains a bullish bias.
A possible increase in selling pressure pushing SOL to form a lower low beneath the 25 August plunge near $65.91 will authorize the forming rounding top. However, a decisive four-hour candle close beneath $62.13 will cancel the bullish narrative, triggering a 13% plummet to $53.54.
If bearishness dominate, the altcoin might see an extended downswing towards $48.68 then $44.14.
Though the reversal fears, SOL bulls appear optimistic to take the asset to the psychological price zone at $100.
Wil SOL touch its target high? You can share your views below.
