đ„ Solanaâs Push to $200 Meets Heavy Resistance Hinting at a Reversal
Solanaâs (SOL) price has recently gained attention with its approach toward the $186 resistance mark, a level that previously triggered reversals. Despite SOL standing only 16% away from a potential run to $200, broader market signals suggest challenges ahead.
Key indicators reveal SOL may be entering overbought territory, which historically leads to corrections, putting the rally at risk.
đž Solana Is Not Ready for a Rally
Solanaâs current market sentiment reflects caution, as the Chaikin Money Flow (CMF) indicator shows SOL above the 20.0 levelâa point where inflows have typically peaked. Historically, reaching or surpassing this threshold signals that investors may begin pulling funds out, likely causing the price to decline. The elevated CMF suggests that Solanaâs recent momentum could face resistance as more investors lock in profits.
High inflows generally signal a demand spike, yet when they reach extreme levels, the trend often reverses. Given the current high inflow level, market sentiment indicates a risk of selling pressure that could hamper Solanaâs ability to push toward $200.
Solanaâs macro momentum also shows signs of cooling off, with technical indicators like the Relative Strength Index (RSI) hitting the overbought level of 70.0. An overbought RSI often precedes corrections, as it signals that the bullish momentum may be overstretched. For Solana, this suggests that the rally could stall, especially as the altcoin approaches critical resistance.
When the RSI moves above 70, itâs typically a red flag for investors, who may anticipate a pullback. Solanaâs recent RSI spike hints that the assetâs uptrend may be approaching its limits. This could limit SOLâs chances of breaking through $186 and instead lead to a correction, particularly if broader market conditions turn bearish.
