- Solana sees retracements surfacing after its new ATH at $80.54.
- The plunge might result in a 15% pullback before another surge can emerge from the support at $58.5.
- A move below the demand barrier at $50 will annul the bullish narrative.
Solana experienced a sudden magnified buying pressure on 14 August. Such actions originated from an explosive rally. With that, SOL traded on another record high.
SOL to Cool Off
On 13 August, Solana indicated a sell gesture, creating a red candle the following day. Meanwhile, an 85% potential surge appeared after the development, pushing SOL towards its ATH near $80.54.
As much as the ascent might be lucrative, traders should beware that a retracement at this level means decency than harm. Holders will book their profits, pushing the altcoin lower, creating a purchasing opportunity.
For now, Solana has its price nearing the support at $69.25, and it may consolidate at this barrier. Meanwhile, another rally here is possible in cases where the buying pressure dominates. Meanwhile, inadequate buying actions will have SOL heading to its previous ATH at $58.5.
For now, it is worth noting that the following substantial zone that buyers may eye is the $82.91 and 161.8% Fib extension, regardless of the levels that the next surge will originate. However, in a massive optimistic scenario, bulls will target the 200% Fib extension at $98, near the psychological level at $100.
Keep in mind that the above bullish thesis presumes that buyers step up at around $58.6 or $69.25. Meanwhile, magnified selling pressure to overpower bulls will register a breach of the support at $50, which will nullify the bullish narrative. Moreover, such actions might catalyze plunges towards the following demand barrier near $44.20.
If Solana manages to keep in bullish momentum to overpower various barriers, it might move higher, as anticipated by analysts. Meanwhile, network activity and broader market actions are vital for the SOL increases. However, recent developments show that SOL will trade higher after slight losses for buyers to regain momentum.
Do you think the current conditions are enough to take Solana (SOL) to its target highs? You can share your views below.