Solana Price Prediction: SOL bulls target $100 as fear of reversal multiplies

Solana price seems to be forming a rounding top, suggesting a short-term downswing.
A failure to form a higher high above the August 24 swing high at $79.58 will confirm a bearish outlook.
If SOL reclaimed the $82.93 resistance level, it might head toward the $100 level.

Solana price has been leading the pack with its exponential bull run since mid-August 2021. However, its upswing appears to be forming a reversal formation, suggesting a decline could be on its way.

Solana price at inflection point

Solana price rose 88% from August 15 to August 21, going from $43.43 to $81.90. While the initial spike was exponential, SOL seems to have formed higher highs and higher lows since August 17. However, the recent sell-off on August 24 set up a lower low, showing the formation of a potential rounding top.

While a breakdown of the $58.50 support level would jeopardize the upswing by threatening a sell-off to $48.68 or $44.14, a decisive 4-hour candlestick close above $74.86 will dampen the bearish outlook a little.

However, if SOL produces a higher high above the August 24 swing high at $78.58, it will confirm the start of a new leg up.

Therefore, investors need to keep a close eye on the formation of the next swing point.

If the bulls flip the 161.8% Fibonacci extension level at $82.93 as support, it would open the possibility of an 18% upswing to the 200% Fibonacci extension at $98.03 and tag the $100 psychological level in some situations.

SOL/USDT 4-hour chart

While things seem to be hanging in the balance for Solana price, investors need to note that the overall structure of the big crypto is bullish. Therefore, altcoins will experience a relatively bullish outlook.

A potential spike in selling pressure that pushes SOL to produce a lower low below the August 25 swing low at $65.91 will add credence to the rounding top forming. A decisive 4-hour candlestick close below $62.13 will invalidate the bullish outlook and trigger a 13% crash to $53.54.

In some cases, this downswing could extend up to $48.68 or $44.14.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram