Briefly –
- Solana’s price faces selling pressure after rallying to an ATH on 9 September.
- The governing technical pattern indicates that SOL might experience a 10% downswing to $142.
- Increased selling pressure might witness SOL plunging by 25%.
Solana seems to endure retracements after attaining its historic high at $216 on 9 September. Keep in mind that Solana disassociated itself from the broader market as it rose higher amid struggles by most tokens. However, the altcoin’s momentum appears to shift to downswings, resulting in price corrections.
SOL Retraces after ATH
Solana has experienced a 25% drop from its record high and might plunge further as the correction seems to persist. Keep in mind that Solana continues to form lower lows and lower highs at the moment.
As the token sees extended consolidation, Solana might secure significant support around the bottom border of the dominant technical pattern near $150. If the coming sessions see SOL breaking beneath this level, bears might catalyze more losses. The level coincides with the MRI’s breakout line.
Meanwhile, significant support will appear around the 100 4H Simple Moving Average that stands close to the 61.8% FIB extension at $142. The Momentum Reversal Indicator (MRI) suggests that SOL will have another defense line at $137 if the selling pressure magnifies. However, Solana can only see the projected 25% drop by the current chart if a massive sell-off appears.
If Solana sees a price bounce at the descending channel in the upcoming session’s bearishness will target $142. Keep in mind that the chart’s pattern bottom range and the 61.8% FIB extension meet at this price level.
Also, if the alternative coin breaks beyond its technical pattern’s middle boundary, SOL will magnify its possibilities of tagging the resistance at the 50 4h Simple Moving Average. The SMA sits closer to the 78.6% FIB extension zone at $174. This zone might present a significant obstacle for SOL in the short term before the alt might try another ATH.
For now, Solana’s explosive momentum seems to cool off as the token appears to suffer losses in the coming section. A broader market rally is essential to support the upsurge thesis.
Stay tuned for more cryptocurrency updates.
James Thompson