Solana has kept climbing in value from $127 in June up over $200 today. The growth follows increasing blockchain usage, including increasing token interest in the form of USELESS.
The most recent advances have brought Solana near a psychological level. Traders now consider if the breakout is the genesis of a new uptrend or a trap. With bullish sentiment gathering speed, most are reading indicators in hope of discovering evidence of fatigue or a possible short-term retracement.
Analyst warns of bearish reversal threat
One analyst warns the current breakout might be a fakeout. Solana’s breakout above $190 went through liquidity but failed to confirm a strong breakout. Price still remains within an uptrending channel, suggesting weak momentum as well as vulnerability to negative pressure on the downside.
Solana may face two bearish scenarios according to the analysis. Worst-case is a fall back towards the Maximum Pain Level at $162.30. That being said, the current price for SOL broke through $190, so a direct fall into it is probably unlikely under the current circumstances.
Relative Strength Index (RSI) is at approximately 80, overbought level. That signals buyer fatigue may be nearby. That kind of extremely high RSI typically precedes a near-term correction as the momentum falters and the profit booking by the traders occurs.
Solana price maintains uptrend despite near pullback
Despite building pressure, Solana is still above the upper limit of the pattern. The MACD remains bullish as the MACD line continues to widen above the signal line. That retains the dominant uptrend despite the predicted short-term corrections.
A buy in the region of $185 may become important. On a test and hold basis, it would confirm the breakout was real. The region may offer a springboard for Solana’s next leg up, offering support for the bulls looking for a re-entrance.
Broader catalysts in the form of a spot SOL ETF or CLARITY Act legislation are expected in October. Those could spur strong institutional buying by reducing regulatory risk and prompting Solana into the next growth cycle.
If the basics meet the technical strength, Solana could re-target the all-time high at $297.50. Beyond that level, price discovery could take the token up until $300 and even $500, revealing a new era for investors as well as broader adoption in the Solana network.
