Solana (SOL) hit $180 for the first time since July, raising investor expectations for reaching $200. Despite the upward trend and increased investor interest, technical indicators suggest caution as Solana appears overbought.
The Chaikin Money Flow (CMF) indicator, which reflects buying and selling pressure, shows weakening buying pressure with its current reading at 0.28. This signifies a potential pullback, though it confirms strong buy activity historically.
The Money Flow Index (MFI), another key indicator, supports this, with a reading above 80.00 indicating an overbought condition. This suggests Solana’s upward momentum might soon ease, potentially resulting in a short-term correction before any further surge.
After breaking out of a symmetrical triangle pattern, the price reached $180, but faces resistance at $185. The last time Solana hit $185, it suffered a 30% correction.
If Solana encounters resistance again, price retracement could see a drop to $161.81 before another upward attempt. If bulls push beyond $185 without a drawback, Solana could approach $200.
