Solana (SOL) has shown remarkable momentum, mirroring the trends of many cryptocurrencies in the top 100. As the altcoin's price climbed to $160, it sparked renewed optimism among investors. However, indicators point towards an impending decline before any substantial gains can be realized.
As of September 17, the crypto Fear and Greed Index was at 33 and has since surged to 61. This index serves as a gauge for investor sentiment, with readings approaching 100 indicating market greed, suggesting a potential price correction is due. Although the market is currently greedy, it has not yet reached extreme levels.
The daily SOL/USD chart reveals a rising wedge pattern, typically associated with bearish movements. As the price nears $160, a 10% pullback to $142.86 seems likely. Nevertheless, if buying pressure increases and SOL surpasses the upper resistance levels, it could break above $200.
Investors should proceed with caution as market conditions evolve. Solana’s trajectory will depend on whether it can maintain its bullish momentum or if a correction is on the horizon.
