On September 7, a number of coins experienced a crash as prices of Bitcoin, Ethereum and other altcoins dropped to wipe out billions of dollars. Solana’s SOL coin also experienced a downfall on the 7th, dropping by 17% from its opening price that day. However, this coin recovered quickly and is now pushing its all-time high of $195.42. While the trend seems to be steering upward, things could quickly go south if Bitcoin were to experience another crash.
On September 7, Bitcoin dropped around 19%, Ethereum fell by 23% and other altcoins crashed around 40% or more! This sell-off proved fatal for many investors who were late to the trade, with $2.44 billion worth of long positions hitting the dust. $336 million worth of short positions also hit a dead end as the uptrend saw a sudden reversal. Altogether, more than $5 billion worth of longs were lost.
Despite the crash, the price of Solana’s SOL seemed to go largely unaffected. The coin recovered the 16% drop on a daily time frame and managed to close on a positive note. After a few days, the daily candlestick remains green and shows signs of continuing this upward trend.
A recent report from Coinshares showed that Solana stood next to Ethereum, with a $13.2 million inflow in Solana-backed products for September. This increase in demand signifies a doubling in SOL’s total inflows year-to-date.
Solana uptrend pushes all-time high
The quick recovery, seen on September 7, shows investor’s interest in the SOL coin. If this buying pressure persists, Solana’s price will quickly climb to retest its all-time high of $195.42. Some believe that the coin may tag the 162% Fibonacci level and reach a brand new all-time high.
If the bid orders continue to surge, Solana’s price could advance even higher and retest the 127.2% Fibonacci extension level at $262.34.
While now may seem like a great time to invest in SOL, investors should show caution due to the exponential run-up. Solan’s RSI has been sitting in the overbought zone since August 13 and there are currently no signs that this will slow down.
If investors continue to seek profits and the buying pressure drops, the coin could experience an 18% drop to the 70.5% Fibonacci retracement at $142. It is also possible that the bears could produce a close below $139.14, which would set up a lower low. If this development were to occur, it could trigger a downswing to the 50% Fibonacci level of $113.74.
Investors should keep an eye on the candlesticks and watch out for sudden downward trends. They should also be wary of further crashes in the crypto market that could sway the price of SOL.
