Solana (SOL) has recently captured significant attention, executing a notable bullish breakout from a previously identified rising wedge pattern. This move past the $220 mark signals strong underlying bullish sentiment, attracting momentum chasers and speculative traders as evidenced by rising Futures Open Interest. While the overall market structure on the 1-day chart remains robustly bullish, a closer look at various indicators suggests a potential short-term pullback may be on the horizon before SOL continues its upward trajectory.
Solana's Bullish Ascent and Ambitious Targets
The one-day chart for Solana reveals a distinctly bullish market structure, with the On-Balance Volume (OBV) consistently trending higher since June, indicative of sustained buying pressure. Following a rally that saw SOL reach $206, the asset successfully retraced to the 61.8% Fibonacci level at $156, affirming the validity of subsequent Fibonacci extension targets. Currently, SOL is testing the $225 level, which represents the 23.6% extension. Should this level be decisively overcome, the next significant price targets lie at $256 and $286. Despite this strong upward momentum, the Relative Strength Index (RSI) at 56 suggests that Solana is not yet in overextended territory, leaving room for further growth.
Navigating a Potential Short-Term Correction
Despite the prevailing bullish outlook, a critical divergence on the 4-hour timeframe hints at an impending correction. This bearish divergence is evident as the RSI has been forming lower highs since September 8th, while Solana's price continued to push higher. Such a pattern frequently precedes a price pullback, suggesting that SOL may retrace to key support levels. Analysts point to $217 and $210 as crucial support zones to watch, a sentiment reinforced by liquidation heatmaps that also identify $217 as a short-term price target. While the immediate path might involve a dip, the overall market strength observed on the daily charts implies that this potential pullback would likely be a temporary consolidation within a larger bullish trend.
