$SOL Profit taking suggests a deeper correction for Solana

Profit taking is one of the most distinct signals in recent movements of Solana. Every time realized profits spiked, the price quickly retraced.

Realized profit shows the income from selling coins. Rising peaks indicate that more holders are selling at a profit, while decreasing values indicate fewer such sellers.

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● On July 22, a spike in profit taking at $205 led to a 23% drop in SOL to $158.

● On August 13, realized profits exceeded $500 million. The price corrected from $201 to $185, which is nearly a 10% drop.

● On August 20, another profit taking peak brought the price down from $187.95 to $180.35, nearly a 4% drop.

● On August 24, realized profits sharply increased around $213, increasing the risk of a new decline.

If Solana repeats recent patterns, a 20% drop from $213 could push the price down to $175. This area has already served as a solid foundation during previous corrections, making it important for traders.

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The buying momentum is weakening, and sellers are entering the game.

The pullback is intensifying due to decreasing buyer activity. From August 13 to 25, the price of Solana rose from $204 to $213. However, the RSI (Relative Strength Index) indicator during this period decreased from 65 to 58.

The Relative Strength Index (RSI) shows the balance between buying and selling. When the price reaches new highs, and the RSI shows decreasing highs, it indicates that buyers are losing strength while sellers are gaining momentum. This is called bearish divergence.

Such a divergence indicates seller activity and a weakening grip of buyers.

Considering the profit taking at $213, the $175 area becomes even more significant. The last two corrections coincided with profit spikes, and the weakening buyer activity increases the likelihood of retesting this level.

At the time of writing, Solana is trading around $196.6 after losing support at $202, which has now become resistance.

The next support levels are at $196 and $192, but the key levels remain at $183 and $175.

If the price defends the $183 mark, the structure may remain unchanged. But if a breakout occurs, it could open the way to $175. If this level is also breached, further declines in SOL are expected.

On the other hand, recovery above $209 and closing above $213 would change the situation, returning the upward trend.