The post Will Solana Reach $200 After Breaking Key Resistance? appeared on BitcoinEthereumNews.com.

Solana’s (SOL) price has reached $180 for the first time since July, igniting speculation that the altcoin might be set for an extended breakout. This upward momentum coincides with surging investor interest, but the question remains: will Solana reach $200? While traders eagerly anticipate this breakout, technical indicators suggest that a pullback may be imminent before SOL can continue its ascent. Solana Becomes Overbought After Impressive Hike One key indicator warning of a pullback for Solana is the Chaikin Money Flow (CMF), which measures buying and selling pressure on an asset. A decreasing CMF, especially during a price rise, signals weakening buying pressure. Conversely, a rising CMF during an upward trend indicates strong buying support. The CMF also reveals whether an asset is overbought or oversold. Typically, readings above 0.20 indicate an overbought condition, while readings below -0.20 suggest oversold status. In Solana’s case, the CMF recently hit 0.28, indicating that the upward price movement has received sufficient buying volume. Read more: How to Buy Solana (SOL) and Everything You Need to Know Solana Chaikin Money Flow. Source: TradingView However, this also suggests that buying pressure has overheated, leading to a potentially negative response to the question: “Will Solana reach $200?” The Money Flow Index (MFI) raises similar caution signals. Currently, the MFI has surpassed a reading of 80.00, confirming that SOL is overbought. If the reading were below 20.00, it would indicate oversold conditions. Given this outlook, Solana’s upward momentum could ease, potentially resulting in a short-term correction before another notable surge. Solana Money Flow Index. Source: TradingView SOL Price Prediction: Retracement Could Be Next On the daily chart, Solana’s price successfully retested the $180 mark after breaking out of an ascending triangle pattern. This breakout signaled a bullish trend, indicating that traders were eager to push the price higher.…

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Filed under: News - @ October 29, 2024 10:24 am