From a technical perspective, it appears that the recent bullish impulse originated after Solana broke out of a symmetrical triangle on its 4-hour chart. The height of the pattern’s y-axis added to the breakout point, suggesting a 24.70% upswing.
The Tom DeMark (TD) Sequential indicator presented a sell signal on Solana’s daily chart. The bearish formation developed as a green nine candlestick. A spike in profit-taking around the current price levels could help validate the pessimistic outlook, leading to a one to four daily candlestick correction before the uptrend resumes.
The Fibonacci retracement indicator, measured from the Jul. 20 low of $22.10 to the recent all-time high of $146.38 suggests multiple price levels that may act as support in the event of a correction. If sell orders start piling up, Solana could drop toward $117.05, $98.91 or even $84.24.
It is worth noting that since Solana has entered price discovery mode, a decisive daily candlestick close above the $146.38 might put on hold the bearish thesis. Under such unique circumstances, Solana could aim for a new all-time high of $180.