Over the past week, Solana [SOL] bulls have maintained control in the market, bringing the token close to a critical level. A breakout above this level could potentially drive the token’s price higher in the near future.
Approaching a Key Resistance
According to data from CoinMarketCap, Solana saw a 7% surge in the last seven days, with its current trading price at $147.28. Notably, a prominent crypto analyst named Ali raised awareness on Twitter about SOL nearing a crucial resistance point.
The tweet emphasized the significance of Solana surpassing the $154 resistance level, as a failure to do so could lead to a downward trend, potentially revisiting the $85 mark, causing distress to many investors.
Additionally, a bearish trend was observed in Coinglass’ data concerning Solana’s long/short ratio. A decrease in this metric signals more short positions compared to long positions, indicating a bearish sentiment.
Furthermore, the netflow for SOL turned positive, indicating an increase in selling pressure. Notably, Solana experienced an inflow of $48 million on September 21, 2024.
The rising selling pressure suggests a higher probability of a price correction in the near future.
Upon analyzing the daily chart, it was noted that Solana’s Chaikin Money Flow (CMF) showed a slight decline, indicating a potential price correction. However, the Moving Average Convergence Divergence (MACD) remained bullish, signaling a prevailing advantage for buyers in the market.
Based on data from Hyblock, in the event of a continued downturn, SOL has a strong support level at $144, from where a potential rebound could occur. This rebound might propel SOL to $150 before reaching $1564.