- Solana price is witnessing the start of a retracement after setting up a new all-time high at $80.54.
- The pullback might extend 15% before a new leg-up stems from the $58.5 support level.
- A breakdown of the $50 demand barrier will invalidate the bullish thesis.
Solana price saw a sudden outburst of buying pressure on August 14, which originated a massive and explosive rally. This upswing pushed SOL to a new all-time high.
Solana price needs to cool off
Solana price flashed a sell signal on August 13 and set up a red daily candlestick the next day. However, this development was followed by an 85% exponential climb that pushed SOL to a new all-time high at $80.54.
While this ascent was impressive, investors need to note that a retracement here will do more good than harm. A pullback will allow holders to book profits, pushing SOL lower, which will, in turn, create a buying opportunity.
Solana price is currently approaching the $69.25 support level and is likely to consolidate around the barrier. If the buying pressure replenishes itself, a new rally might stem from here. However, if the buyers fail to step up, SOL might head toward the previous all-time high at $58.50.
Regardless of where the second leg-up originates, investors need to note that the next significant level that the bulls might target is the 161.8% Fibonacci extension level at $82.91 or, in a highly optimistic case, the 200% Fibonacci extension level at $98, which is very close to the $100 psychological level.
SOL/USDT 1-day chart
The bullish outlook detailed above assumes that the buyers make a comeback around $58.50 or $69.25. If the selling pressure overwhelms the bullish momentum, leading to a breakdown of the $50 support level, it will invalidate the bullish outlook and trigger a descent to the subsequent demand barrier at $44.20.
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