Briefly –
- Early sessions on 7 September had SOL crashing by nearly 17% before recovering within no time.
- An extended upsurge will see SOL retesting the ATH at $195.42.
- Meanwhile, if bears form a lower low under $139.14, they will annul the bullish narrative.
Solana’s price appears stable regardless of the 7 September market crash that had long positions losing billions of cash. Solana continues with its uptrends with hopes to retest its record peaks. However, things might go south if Bitcoin sees another price crash.
Market losses Billions after Crash
On 6 September, most alternative tokens saw a sudden plunge but recovered quickly. However, the day had a red candle. The following day, Bitcoin plummeted by nearly 19%, Ethereum lost 23% as other alternative coins plunged over 40%.
The market crash punished side-lined investors that joined late, as the liquidation chart reflected. The market had long positions worth $2.44 billion were lost. Also, shorts worth $336 million hit dust following the sudden upsurge reversal.
However, the current sell-off appears less painful than 19 May that had long positions losing over $5 billion. Meanwhile, Solana appears not bothered by the price crash as it gained its 16% downtrend on a daily time frame. Also, the alt showcased price positivity.
Solana’s current daily candle is green and indicates extended price upticks, matching the increased institutional demand. CoinShares’ recent data shows that SOL’s weekly inflows for this month stood at $13.2 million, next to ETH. That reflects massive demand that doubles Solana’s overall inflows YTD.
SOL Targets ATH
Solana lost around 16% than its opening price on 7 September. However, the alt recovered the losses quickly to close the day in the green. The quick price recovery shows magnified investor interest in Solana. If the token extends its amplified buying pressure, SOL will likely surge to retest the ATH at $195.42. Also, the asset has chances to test the 162% FIB extension at $196.63 for a new ATH.
Meanwhile, increased bid orders will see SOL’s price advancing higher to retest the 127.2% FIB extension at $262.34. As much as the Solana ecosystem depicts healthy moves, investors should be cautious because of the sudden surge. The RSI has remained in the overbought territory since 13 August and appears not to slow down.
If the token sees profit-booking to reduce the buying pressure, Solana might lose 18% towards the 70.5% FIB retracement at $142. Meanwhile, if bears create a close beneath $139.14, investors will have to forget about the bullish narrative. Such an action can catalyze plunges towards the 50% FIB retracement at $113.74.
