CandleFocus

SOL's Bullish Run Hits 3-Month Peak at $183; Pullback Ahead?

Author: Content Editor
Solana's native token, SOL, has experienced steady gains and reached a three-month high of $183.30, outperforming Bitcoin and other altcoins in October. The rise in price can be attributed to increased network activity and demand for Solana's DeFi and blockchain services. However, as the token approaches critical resistance levels, there may be a potential pullback. The number of monthly active addresses on the Solana network has steadily increased, indicating increased user engagement. On a daily scale, there was a slight dip in active addresses on October 23 but rebounded shortly after. Traders see SOL as a competitor to Ethereum in the long term. The cryptocurrency is currently at a critical juncture, eyeing a push toward the $200 mark, but caution is advised as indicators suggest possible overvaluation. The Chaikin Money Flow (CMF) indicator hints at a potential pause in SOL's rally, while the Directional Movement Index (DMI) leans bullish but with weak strength. A modest pullback may occur before regaining momentum, with potential support levels at $159-$152, the 20-day and 50-day EMAs.

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