In less than a week, Solana (SOL) has grown by 18%, surpassing the $180 mark and sparking hopes for further growth. This rapid breakout has attracted bold predictions from some traders, while others have decided to take profits.
Solana's upward momentum is forming, but...
On August 9, SOL traded around $181, after recording a 3.05% increase in 24 hours, marking three consecutive days of growth. However, as the price approaches the critical resistance level, investor and trader participation shows signs of decline. Data from Bitcoin Magazine indicates that SOL's trading volume in the last 24 hours has decreased by 10% compared to the previous day.
The underlying causes for this decline, despite the price increase, may include the unclear direction of the asset, past performance, and ongoing profit-taking.
On-chain indicators show mixed signals
Data from CoinGlass recorded an influx of $15.18 million into the exchange on August 9. In fact, such inflows during bullish phases often indicate that investors are preparing to sell when prices peak.
At the same time, liquidation clusters show support at $174 and a critical resistance level near $184.
The amount of long orders reached $436.74 million, far exceeding the $23.79 million from short orders. This imbalance not only reinforces the dominance of the bulls but also highlights $184 as a decisive point.
Technical analysis of Solana and upcoming levels
According to Bitcoin Magazine, Solana's recent breakout through a downtrend line has triggered the current price increase, supported by the positive shift in the broader market.
However, closing daily above $185 is a crucial condition to aim for the $256 target, corresponding to an approximately 40% increase. Conversely, if this momentum weakens and the price cannot maintain above this critical threshold, it is highly likely that history will repeat itself with a decline or the price may continue to move sideways.
SOL's Relative Strength Index (RSI) is currently at 57, indicating that the price has not yet entered the overbought territory. This suggests that the altcoin still has room to continue its upward momentum. However, the Supertrend at $190.33 still indicates an active downtrend, keeping sellers engaged.
Will the bulls be able to break through the $185 threshold, or will they face another stall? This will shape the next chapter for Solana in this volatile bullish phase.
