The price of Solana (SOL) has increased by 12% over the past week, and recent changes indicate there may be more potential for growth. With the Relative Strength Index (RSI) decreasing to 61 from previously overbought levels, SOL has the capacity to move upward without facing immediate sell-offs.
Moreover, the significant activity occurring on Pumpfun, one of the foremost applications within the Solana ecosystem, is enhancing user participation and contributing to ecosystem expansion. The relaxed RSI alongside the rising Pumpfun metrics might be crucial factors driving further price spikes in the upcoming days.
SOL RSI Is Below the Overbought Stage
SOL’s RSI has recently fallen to 61, down from over 70 just the day before. This transition indicates that buying pressure has diminished somewhat, moving away from overbought situations. An RSI above 70 usually signifies that an asset is overbought and a correction could occur.
Now that the RSI is below this significant threshold, it suggests that there is potential for the price to sustain its upward trend without experiencing immediate selling pressure.
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The Relative Strength Index (RSI) serves as a momentum gauge that assesses the speed and changes of price movements. It spans from 0 to 100, where values over 70 are indicative of an overbought state and values below 30 suggest an oversold condition.
Even though SOL’s price has surged by 12% in the last seven days, the recent decline in RSI below 70 could be an encouraging sign. It indicates that the recent rally was not excessively overextended, thus allowing room for additional gains. With the RSI now down from the overbought threshold, there may be prospects for further price appreciation in the near term.
Can Pump.fun Metrics Drive Solana Growth?
Pump.fun, a leading application in the Solana ecosystem, has been breaking records consistently. Since October 14, the platform has witnessed over 20,000 coins launched daily, achieving a peak of 34,094 coins on October 22.
This surge in coin launches is noteworthy as Pumpfun now constitutes nearly 50% of daily DEX transactions and volumes within the Solana ecosystem. Such heightened engagement could trigger a fresh price surge for Solana, reminiscent of the rise seen from March to April.
In the past, the exponential increase in coins launched on Pumpfun coincided with SOL’s price escalating from $107 to $209 within a span of three weeks. The rising activity reflects increased user involvement, which could naturally propel SOL’s price higher once again.
SOL Price Prediction: Is a Return to $194 Imminent?
SOL is presently trading above all EMA lines, indicating strong bullish momentum. The short-term EMA is providing immediate support, suggesting that buyers are consistently acting during minor retracements.
The configuration of the EMA lines, with shorter-term ones positioned above the longer ones, further reinforces this positive trend, illustrating healthy continuation potential.
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If SOL successfully breaks above $182.46, it may soon test $194.04, marking its highest price since July. Support levels are identified at $165.37 and $147.55 — both crucial for sustaining the present uptrend.
The EMA arrangement, coupled with these support and resistance points, indicates that the bullish trend remains intact, with ample opportunity for further growth if buying momentum persists.
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