Solana (SOL) recently soared to a five-month high, briefly topping $200 amid a strong bullish rally. However, the altcoin now faces a critical test as profit-taking sentiment grows among investors, threatening to reverse its gains.
Why Solana Investors Are Cashing Out
The Net Unrealized Profit/Loss (NUPL) indicator reveals Solana’s profits have reached a five-month peak, putting many holders in the green. Historically, such spikes into the “Optimism” zone trigger mass sell-offs, and SOL may be no exception.
Overbought Signals Flash Warning
Solana’s Relative Strength Index (RSI) now sits above 70, signaling overbought conditions. While the market can stay overbought during strong uptrends, SOL’s past corrections at these levels suggest a pullback is likely.
Can SOL Hold $200? Key Levels to Watch
- Current price: $199 (up 21% in a week)
- Resistance: $200 (failed to sustain)
- Support levels: $188, then $176
- Bullish scenario: Holding $200 could propel SOL to $221
If profit-taking accelerates, Solana risks dropping to $188 or lower, erasing recent gains. However, if bullish momentum continues, SOL may stabilize above $200 and target new highs.
