Solana (SOL), soaring then a sharp brake on the rise... "If $96 breaks, it's in the $80s" warning

▲ Solana (SOL)/ChatGPT generated image

Solana, which surged sharply after breaking past $110 in August, has entered a full-scale correction phase due to weakening short-term upward momentum.

According to cryptocurrency specialized media Cointelegraph on September 17 (local time), Solana (SOL) is facing a significant technical test for the first time since its sharp rise from around $75 to above $110.

With a slowdown in short-term momentum becoming apparent, Solana has consistently failed to break through the resistance level in the $102 to $104 range. Subsequent rebound attempts also aimed to enter the $106 to $110 area, but the buying strength clearly showed a gradual weakening trend.

As the recent decline has deepened, the price has fallen below the short-term moving average near $98, making the $96 to $98 range a key support level. If the $96 level is consistently breached, the decline could extend to the $92 to $93 range, where the long-term moving average and the rising mid-term moving average converge. Below that, the $88 to $90 range is considered the next support target.

The Relative Strength Index (RSI), a technical indicator, remained above 50 for a significant period during the uptrend but recently fell to the mid-40s. While it's not yet considered a recessionary phase, it is analyzed as a clear sign that buying momentum is weakening.

Market analysis suggests that reclaiming the $100 level is the top priority for a rebound. If the $104 level is recovered, the short-term chart structure will stabilize, but reclaiming the key breakthrough level of $110 is a prerequisite for resuming a structural upward trend.

[Article Key Summary]

-Solana (SOL) is facing its first technical test due to weakening short-term momentum after breaking $110.

-With the price pushed below the $98 short-term moving average, if $96 is breached, further correction to $92-$93 is possible.

-To continue the rebound, a swift recapture of $100 and $104, and a breakthrough of $110, are essential.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*