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Solana’s (SOL) Price Correction is Likely to End at This Price Level

SOL's price correction extended below $170 but the on-chart indicators on the higher timeframes suggested the price correction is almost over.

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Over the past five days, Solana (SOL) has embarked on two price corrections with sellers extending the bearish momentum. Earlier on 18 March, SOL dipped aggressively from $210 to $163 within 48 hours.

A brief rebound by buyers took it back to the $190 price zone but sellers maintained the short term bearish move with another dip below $170. With SOL currently trading at $168, buyers would need to be patient to avoid being caught out by the selling pressure.

Could Memecoins Be Affecting Solana’s Price Action?

The 2024 bull market has seen the Solana blockchain emerge as the favourite chain for memecoin projects. Memecoins such as BONK, WIF, and WEN have experienced rapid price gains in days to weeks. Most recently, BOME and SLERF further extended the memecoin narrative on Solana with outlandish gains in a matter of days.

With SOL acting as the primary token of exchange for memecoins, profit takers from memecoins swap profits into SOL. Exchanging SOL back to USDT is bound to put pressure on SOL’s price action, as investors look to secure their capital in the comfort of stablecoins to limit their exposure to volatility.

However, SOL’s long term price action remains bullish on the daily and weekly price chart. What price level should traders be looking to buy in?

Buy Levels to Consider For Solana’s Long Term Bullish Outlook

The bearish retracement saw key price indicators highlight the short term selling pressure on SOL. The Relative Strength Index (RSI) dipped to 39, underscoring the bearish trend on the lower timeframes.

Similarly, the Chaikin Money Flow (CMF) was in negative, as SOL experienced increased capital outflows in the short term.

However, on the daily timeframe, both the RSI and CMF were bullish. The RSI stood at 57 and the CMF registered a reading of +0.14. This echoed the long term outlook for SOL.

As such, traders looking to go long can wait for price to get to either the $160 support level or $140 support level. A key signal will be a strong bullish candle close at either support level to hint at a price rebound.

Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.