Solana Decouples From Bitcoin Setting New All-Time High
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.
Share this article
Solana has been on a roll lately as its price continues to make new all-time highs, decoupling from 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.
For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.
Share this article
Recommended News
Solana Integrates Chainlink to Offer Crypto Price Feeds
