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Solana Price Prediction: SOL bulls target $100 as fear of reversal multiplies

  • Solana price seems to be forming a rounding top, suggesting a short-term downswing.
  • A failure to form a higher high above the August 24 swing high at $79.58 will confirm a bearish outlook.
  • If SOL reclaimed the $82.93 resistance level, it might head toward the $100 level.

Solana price has been leading the pack with its exponential bull run since mid-August 2021. However, its upswing appears to be forming a reversal formation, suggesting a decline could be on its way.

Solana price at inflection point

Solana price rose 88% from August 15 to August 21, going from $43.43 to $81.90. While the initial spike was exponential, SOL seems to have formed higher highs and higher lows since August 17. However, the recent sell-off on August 24 set up a lower low, showing the formation of a potential rounding top.

While a breakdown of the $58.50 support level would jeopardize the upswing by threatening a sell-off to $48.68 or $44.14, a decisive 4-hour candlestick close above $74.86 will dampen the bearish outlook a little.

However, if SOL produces a higher high above the August 24 swing high at $78.58, it will confirm the start of a new leg up.

Therefore, investors need to keep a close eye on the formation of the next swing point.

If the bulls flip the 161.8% Fibonacci extension level at $82.93 as support, it would open the possibility of an 18% upswing to the 200% Fibonacci extension at $98.03 and tag the $100 psychological level in some situations.

SOL/USDT 4-hour chart

SOL/USDT 4-hour chart

While things seem to be hanging in the balance for Solana price, investors need to note that the overall structure of the big crypto is bullish. Therefore, altcoins will experience a relatively bullish outlook.

A potential spike in selling pressure that pushes SOL to produce a lower low below the August 25 swing low at $65.91 will add credence to the rounding top forming. A decisive 4-hour candlestick close below $62.13 will invalidate the bullish outlook and trigger a 13% crash to $53.54.

In some cases, this downswing could extend up to $48.68 or $44.14.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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