Will Solana reach $200 after breaching key resistance?
Solana (SOL) price reached $180 for the first time since July, reflecting speculation that the altcoin could be set for an extended breakout. This upward momentum corresponds to increasing investor interest, but the question remains: Will Solana reach $200?
As traders look forward to this breakout, technical indicators suggest that a pullback is likely before the SOL continues to climb.
Solana was overpowered after a wonderful walk.
One key caveat to Solana's returns is the Chaikin Fund Flow (CMF), which measures buying and selling pressure on assets.
Decreasing CMF indicates weakening buying pressure, especially during rising prices. Conversely, a rising CMF during an uptrend indicates strong buying support. CMF also shows whether the asset is overbought or oversold.
Typically, readings above 0.20 indicate an overbought condition, while readings below -0.20 indicate an oversold condition. In Solana's case, the CMF recently hit 0.28, indicating that the upward price movement has found sufficient buying volume.
Read more: How to buy Solana (SOL) and everything you need to know
However, this also suggests that buying pressure is overheated, “Will Solana reach $200?” He can answer the question in the negative.
The Money Flow Index (MFI) raises similar cautionary signs. Currently, the MFI has crossed the 80.00 reading, confirming that SOL is overbought. If the reading is below 20.00, it indicates oversold conditions.
From this perspective, Solana's upward movement could be eased, resulting in a short-term correction before another significant operation.
SOL Price Forecast: Rebooking likely to continue.
On the daily chart, Solana price successfully tested the $180 mark after breaking out of the ascending triangle pattern. This breakdown shows that traders are very eager to push the price higher.
However, even if SOL trades higher, the supply zone at $185 can lower the value. The last time SOL reached $185, it faced a 30% correction and has yet to hit the mark.
This does not mean that Solana will not reach 200 dollars. But before this happens, before making another attempt to go higher, the excess resistance can bring the price back to $161.81.
Read more: Solana (SOL) Price Prediction 2024/2025/2030
On the other hand, if the bulls successfully drive it above $185, it may not have a problem before the price reaches $200.
Disclaimer
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