- Solana price might pull back as MRI flashes a sell signal on the 12-hour chart.
- The demand zone extending from $91.51 to $96.27 is likely to reduce the selling pressure.
- A decisive close above $130.16 will invalidate the bearish thesis.
Solana price shows a massive uptrend coming to a temporary pause after setting up new all-time highs. The downswing could exacerbate if an intermediate demand barrier fails to cushion the incoming selling pressure.
Solana price to retrace before a run-up
Solana price saw its price more than triple over the past 17 days as it set up a new all-time high at $130.16. This impressive and exponential rally ignored the Momentum Reversal Indicator (MRI), but the recent sell signal that flashed in the form of a red ‘one’ candlestick seems to be playing a role.
This technical setup forecasts a one-to-four candlestick correction. Although SOL initially ignored this warning signal and set up a new all-time high at $130.16, it eventually began its correction phase and is currently trading at $111.80.
If the investors continue to book profit, Solana price will test the demand zone stretching from $91.51 to $96.27. If the buyers make a comeback around this barrier, a reversal is more than likely to occur here.
However, there is a chance SOL might briefly dip below $91.51 before restarting the upswing. In total, this retracement would represent an 18% downswing.
SOL/USDT 12-hour chart
Regardless of the sell signal, altcoins like ADA, SOL and AVAX are rebelling against the trend that the big crypto is setting. Therefore, there is a high chance Solana price might not stick to the norm but restart an uptrend that retests the current all-time high at $130.16.
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