Solana Retreats from 8-Month Highs as Profit-Taking and Market Sell-Off Weigh
Solana has pulled back from its recent eight-month high as profit-taking, technical exhaustion, and broader crypto market weakness combined to pressure the token. While near-term sentiment looks fragile, analysts see the move as a reset rather than a long-term reversal.
Solana retreats from 8-month high
Solana (SOL) retreat from its September highs is the result of a mix of profit taking, technical exhaustion, and shifts in market sentiment that combined to sap momentum just as the token approached new peaks.
After a sustained rally that propelled SOL into eight-month highs, many holders -especially short-term traders - opted to realise gains, triggering cascading sell orders and putting downward pressure on price.
On-chain metrics add weight to this narrative: supply in profit had reached near extremes, a setup historically associated with corrections, and rising exchange balances signalled that tokens were flowing back toward platforms where they could be sold.
Further compounding the downward pressure, elevated open interest and leverage in SOL futures left many traders vulnerable to liquidations when sentiment turned.
In the broader crypto market context, the late-September sell-off across assets -driven by macro uncertainty, tightening risk appetite, and large deleveraging flows - spilled into SOL’s decline as well.
Unless buyers reassert dominance, the path ahead may test the $176.00-to-$173.50 support zone. A failure to hold there risks further downward correction, possibly toward the $159.50-to-$156.00 zone.
Conversely, a renewed uptick above resistance at the late August $217.93 high and demonstrated buyer conviction could see the token reconnect with bullish trajectories toward the $250.00 region.
For now the retreat reflects a healthy reset more than a structural reversal.
Solana bearish scenario:
Solana's swift descent through its August-to-September support line is short-term bearish with the 25 August low at $185.55 representing the next downside target.
While no bullish reversal above Thursday's $212.50 high is seen, the next lower support zone at $175.81-to-$173.48 may well be revisited.
Solana bullish scenario:
For Solana to resume its ascent, not only does Thursday's $212.50 high need to be exceeded but also the late August high at $217.93.
In this case a further advance toward the mid-September low at $230.28 may be on the cards.
Solana daily candlestick chart
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