Despite the recent week’s dominance of Solana [SOL] bulls in the market, the token is now on the verge of a critical phase. A breakthrough above a key level could propel the token’s price higher in the near future.
Impending Hurdle for Solana
Recent CoinMarketCap data indicates a 7% surge in Solana’s value over the past week, with current trading resting at $147.28. Notably, popular crypto analyst Ali pointed out the approaching challenge SOL faces as it nears a significant resistance point.
Ali’s tweet emphasized the importance of Solana surpassing the $154 resistance level, as failure to do so could trigger a drop, potentially plummeting the token back to $85 and causing distress for many investors.
Furthermore, a bearish signal was unveiled by CryptoCrypto’s examination of Coinglass data, revealing a declining long/short ratio for Solana. A decreased metric typically signifies more short positions than long ones, hinting at bearish trends ahead.
Adding to the negative outlook, SOL’s netflow turned positive, indicating increasing selling pressure. In particular, Solana witnessed an inflow of $48 million on September 21, 2024, strengthening the case for a potential price correction.
An evaluation of the token’s daily chart by CryptoCryoto exposed a downtick in Solana’s Chaikin Money Flow (CMF), suggesting an impending price correction. Despite this, the MACD signaled a bullish trend, favoring buyers in the market.
According to Hyblock’s analysis, should the downtrend persist, SOL has robust support at $144, presenting an opportunity for a rebound. A potential rally could lift SOL to $150 before aiming for $1564.