Solana looks unstoppable as the asset continues to make higher highs.
Key Takeaways
- Solana has recorded a new all-time high of $84.
- Further upward pressure could see it rise as high as $108.
- A daily candlestick close below $78 could invalidate the bullish outlook.
Solana has been on a roll lately as its price continues to make new all-time highs, decoupling from Bitcoin and the rest of the cryptocurrency market in the process. Now, SOL must decisively close above $84 to target $100.
Solana Makes New All-Time High
Solana just set a new all-time high.
The high-throughput blockchain’s SOL token has enjoyed an impressive bull rally over the last month. The tenth-largest cryptocurrency by market cap has gained more than 270% in market value, peaking at a high of $82 on Aug. 21 before a slight retrace.
The Tom DeMark (TD) Sequential indicator showed that a spike in profit-taking was underway as it presented a sell signal on the daily chart roughly 24 hours after SOL set a new record high. The bearish formation, which developed in the form of a green nine candlestick, was validated as SOL plummeted towards $66.
Now, it appears that investors have taken advantage of the negative price action to buy Solana tokens at a discount. The increasing demand for the asset has allowed prices to recover the losses incurred, pushing it to record a new milestone of $84.
The Fibonacci retracement indicator (measured from May 18’s high of $58.40 to May 23’s low of $19.10) suggests that a decisive daily close above $83 could lead to higher highs. Based on this technical index, Solana could target $97 or even $108 upon a clear breach of the 161.8% Fibonacci retracement level.
It is worth noting that the Relative Strength Index (RSI) suggests that Solana is trading at overbought conditions. More importantly, a bearish divergence appears to be developing between the rising prices and the declining RSI. For this reason, investors must pay close attention to the $78 support.
If Solana were to break through the $78 level, it could signal the beginning of a steep correction. Under such unique circumstances, SOL could dive towards $58.40, the level the asset topped out at in May. Slicing through this crucial demand barrier might see further downward pressure to $43.40.