Solana Price Forecast: SOL Price Discovery Takes A Breather Above $70, Why Rally Must Cool Off
- Solana price uptrend pushed it to a new all-time high at $80.
- Following the rally, SOL retraced to $70, taking a breather before resuming toward $100.
- Solana needs to confirm support, possibly at $70, and allow fundamentals to catch before extending the bullish leg.
Solana gained more traction mid-week to trade new record highs at $80. However, an immediate correction followed, leading to a minor trend reversal. Support at $70 played a crucial role, ensuring that correction was mitigated stopped.
In the meantime, Solana is trading at $72 amid another push from the bulls for gains above $80. The continued rally is impressive but is starting to raise sustainability questions. If SOL closes the gap to $100, will it settle at this level and keep the uptrend intact? On the other hand, will investors end up in a bull trap only for the token to plunge massively?
Should Solana Slow Down The Rally?
The TD Sequential indicator flashed a sell signal on August 13, culminating in a daily red candlestick a day after. However, bulls responded, pulling SOL nearly 100% higher to its new all-time high at $81.68.
As mentioned, buyers seem ready to make another attempt at cracking the new record-high barrier. While this bullish outlook remains essential for speculators in the market, a pulldown may be the blessing in disguise that Solana needs.
Realize that slowing down the uptrend will allow investors to consolidate the profits. Another buying opportunity will feed the uptrend’s lifeblood and create the tail force for the coveted rally to $100.
However, if Solana keeps the momentum, it risks correcting the previous all-time high, marginally above $61.
SOL/USD Daily Chart
It is worth mentioning that the Moving Average Convergence Divergence (MACD) indicator has a bullish signal sustained from the uptrend’s initial stage in July. Keeping this technical outlook intact reveals that bulls will remain in control in the coming sessions.
SOL/USD Daily Chart
Regardless of what happens to Solana, traders should consider that the price is destined to test the 161.8% Fibonacci retracement level. This move will create a new high above $100 while paving the way for another upswing to $180, near the 261.8% Fibo level.