- Solana price is witnessing the start of a retracement after setting up a new all-time high at $80.54.
- The pullback might extend 15% before a new leg-up stems from the $58.5 support level.
- A breakdown of the $50 demand barrier will invalidate the bullish thesis.
Solana price saw a sudden outburst of buying pressure on August 14, which originated a massive and explosive rally. This upswing pushed SOL to a new all-time high.
Solana price needs to cool off
Solana price flashed a sell signal on August 13 and set up a red daily candlestick the next day. However, this development was followed by an 85% exponential climb that pushed SOL to a new all-time high at $80.54.
While this ascent was impressive, investors need to note that a retracement here will do more good than harm. A pullback will allow holders to book profits, pushing SOL lower, which will, in turn, create a buying opportunity.
Solana price is currently approaching the $69.25 support level and is likely to consolidate around the barrier. If the buying pressure replenishes itself, a new rally might stem from here. However, if the buyers fail to step up, SOL might head toward the previous all-time high at $58.50.
Regardless of where the second leg-up originates, investors need to note that the next significant level that the bulls might target is the 161.8% Fibonacci extension level at $82.91 or, in a highly optimistic case, the 200% Fibonacci extension level at $98, which is very close to the $100 psychological level.
SOL/USDT 1-day chart
The bullish outlook detailed above assumes that the buyers make a comeback around $58.50 or $69.25. If the selling pressure overwhelms the bullish momentum, leading to a breakdown of the $50 support level, it will invalidate the bullish outlook and trigger a descent to the subsequent demand barrier at $44.20.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Bitcoin whales could prevent BTC price first monthly loss of 2023 through this move
Bitcoin price is inching towards the first monthly loss of 2023. At press time, BTC price is 4.4% below $29,233, its price on May 1. If BTC fails to regain lost ground, the asset is in for its first monthly loss of the year.
Cardano price rallies with surge in DEX volume and new meme coin launch
Cardano-based decentralized exchange Minswap registered a large spike in transaction volume since the beginning of May. Between May 1 and 30, transaction volume surged from $10 million to $72 million.
Shiba Inu eyes recovery as holders pull more than 44 trillion tokens off exchanges
The reserve of Shiba Inu tokens across cryptocurrency exchange platforms has consistently declined between March and May. SHIB holders have pulled 44.53 trillion tokens off exchanges.
XRP likely set for price rally as network activity heats up
XRP Ledger’s native token XRP registered an increase in address activity on Monday, when more than 490,000 addresses interacted on the network, signaling an impending price rally.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.