🚨 Solana (SOL) Hits $180 – Could a Correction Be on the Horizon? 🚨
Solana's (SOL) price has broken through the $180 barrier for the first time since July, sparking excitement among investors who wonder if the altcoin is gearing up for an extended rally. With strong momentum and rising interest, many are setting their sights on $200. But, can SOL sustain this pace, or is a pullback imminent?
While the enthusiasm builds, technical indicators suggest caution. One key warning comes from the Chaikin Money Flow (CMF) indicator, which gauges buying versus selling pressure. A declining CMF amid rising prices signals weakening buying strength, while a rising CMF indicates solid support. A reading above 0.20 often signifies an overbought state, and Solana recently hit a CMF level of 0.28. This suggests a strong but possibly overheated buying phase, raising questions about whether SOL can truly make it to $200 without a cooling-off period.
The Money Flow Index (MFI) echoes similar concerns. With the MFI surpassing 80.00, SOL has entered overbought territory. Typically, a reading below 20.00 would suggest oversold conditions, but with the current high levels, a minor correction could be on the cards before Solana attempts another leg up.
On the daily chart, Solana has successfully retested the $180 level following a breakout from an ascending triangle formation, a bullish signal that indicates strong upward momentum. However, traders should be wary as SOL approaches a supply zone near $185, which previously triggered a 30% retracement. Given the historical resistance at this level, SOL may face challenges in advancing without first undergoing some consolidation.
