- Solana price rose 58% from the September 7 swing low and set up a new all-time high at $216.91.
- SOL could be looking at a minor correction as MRI flashed a sell signal on the 12-hour chart.
- A breakdown of the $160.81 support floor will invalidate the bullish thesis.
Solana price has been on an exponential rise over the past month, shattering all resistance levels and setting up new all-time highs. While this run-up is impressive,
Solana price at inflection point
Solana price rose a humungous 432% over the past 27 days, hitting a new all-time high at $216.91 on September 9. The flash crash of September 7 failed to budge its enthusiasm as SOL recovered the losses on the same day.
However, things are cooling off, and warnings are being converted to sell signals, indicating that a much-awaited retracement might be incoming.
The Momentum Reversal Indicator (MRI) flashed a sell signal in the form of a red ‘one’ on the 12-hour chart. This setup forecasts a one-to-four candlestick correction.
Therefore, going forward, investors can expect Solana price to kick-start a retracement. The immediate support level at $183.16 is the first barrier that the altcoin will encounter. Failing to hold above this floor will put $173.73 in bears’ sights. A retest of this support foothold will constitute nearly a 10% pullback.
This area is the best place for reversal of the trend and resumption of the exponential growth. If the buyers fail to make a comeback here, SOL could descend to $160.81.
SOL/USDT 12-hour chart
Over the past month or so, Solana price has disregarded many sell signals, and the bulls could also ignore the one that is currently suggesting that a correction might occur. However, this move will be confirmed if SOL can produce a decisive close above $205.64. This development will set up a higher high and ensure the start of a new uptrend, invalidating the bearish thesis.
If the bid orders continue to pile up, Solana price might tag the 162% Fibonacci extension level at $232.85.
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