Solana (SOL) Nears $180: Start of a Surge or Heading for a Decline?
Solana (SOL) price has surged 61% in a month, almost reaching US$180, the highest level in the last two months. This increase reflects a strong bullish trend in the market.
Obstacles Towards US$200
Despite the significant increase, Solana faces obstacles to break through the US$200 resistance. Some of the inhibiting factors include:
- Investor Selling Pressure: Many SOL holders are taking profits, as seen from the Realized Profit/Loss ratio reaching 15.0. Historically, ratios above 10.0 are often followed by short-term price corrections.
- Overbought Conditions: The RSI indicator above 70 indicates that SOL is in the overbought zone, which is usually followed by a price decline or consolidation.
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Correction Risk and Support Levels
If Solana fails to break through US$200, it has the potential to fall to the following support levels:
- US$161: Initial support that may be tested when the price weakens.
- US$136: A deeper decline could occur if selling pressure continues.
Conclusion
Solana has shown impressive performance with a significant price increase. However, the hurdle to $200 requires caution.
Investors are advised to monitor technical indicators and market sentiment for smart decision making.
