Solana Decouples From Bitcoin Setting New All-Time High
- Solana has recorded a new all-time high of $84.
- Further upward pressure could see it rise as high as $108.
- A daily candlestick close below $78 could invalidate the bullish outlook.
Solana has been on a roll lately as its price continues to make new all-time highs, decoupling from the rest of the cryptocurrency market in the process. Now, SOL must decisively close above $84 to target $100.
Solana Makes New All-Time High
Solana just set a new all-time high.
The high-throughput blockchain’s SOL token has enjoyed an impressive bull rally over the last month. The tenth-largest cryptocurrency by market cap has gained more than 270% in market value, peaking at a high of $82 on Aug. 21 before a slight retrace.
The Tom DeMark (TD) Sequential indicator showed that a spike in profit-taking was underway as it presented a sell signal on the daily chart roughly 24 hours after SOL set a new record high. The bearish formation, which developed in the form of a green nine candlestick, was validated as SOL plummeted towards $66.
Now, it appears that investors have taken advantage of the negative price action to buy Solana tokens at a discount. The increasing demand for the asset has allowed prices to recover the losses incurred, pushing it to record a new milestone of $84.
The Fibonacci retracement indicator (measured from May 18’s high of $58.40 to May 23’s low of $19.10) suggests that a decisive daily close above $83 could lead to higher highs. Based on this technical index, Solana could target $97 or even $108 upon a clear breach of the 161.8% Fibonacci retracement level.
It is worth noting that the Relative Strength Index (RSI) suggests that Solana is trading at overbought conditions. More importantly, a bearish divergence appears to be developing between the rising prices and the declining RSI. For this reason, investors must pay close attention to the $78 support.
If Solana were to break through the $78 level, it could signal the beginning of a steep correction. Under such unique circumstances, SOL could dive towards $58.40, the level the asset topped out at in May. Slicing through this crucial demand barrier might see further downward pressure to $43.40.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Source: Read Full Article