Solana’s Push to $200 Meets Heavy Resistance Hinting at a Reversal
2024-10-31

Solana’s SOLUSD 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.
Solana Is Not Ready for a Rally
Solana’s current market sentiment reflects caution, as the Chaikin Money Flow (CMF) indicator shows SOL above the 20.0 level—a 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 Solana’s 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 Solana’s ability to push toward $200.
Solana’s 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, it’s typically a red flag for investors, who may anticipate a pullback. Solana’s recent RSI spike hints that the asset’s uptrend may be approaching its limits. This could limit SOL’s chances of breaking through $186 and instead lead to a correction, particularly if broader market conditions turn bearish.
SOL Price Prediction: Pulling Back
Currently, Solana trades at $173, sitting just 16% shy of the $200 mark. To reach this milestone, SOL must overcome the $186 resistance, a level it has repeatedly failed to breach since mid-May. The five-month persistence of this barrier suggests that SOL may struggle to continue its upward momentum.
If SOL fails to hold at $186, the altcoin could retrace to $161. A drop below this level could further push Solana’s price down to $155, effectively stalling the rally and challenging bullish sentiment.
However, if broader market trends push the bullish momentum to new levels, SOL could defy expectations and break through $186. Breaching this resistance would invalidate the current bearish outlook, positioning Solana to aim for $200 and reinforcing its rally potential in the short term.