- SOL's price rose 0.5% to $129.70, indicating possible bullish movement.
- RSI trends and moving averages suggest a potential price rebound and upward trend.
- Solana's fundamentals are strong, with potential gains if market recovery continues.
Solana (SOL) is showing encouraging signs. After a challenging weekend for the crypto market, SOL's price increased by 0.5% yesterday, reaching $129.70. Although it’s down 16% over the past month, recent movements hint at a possible rebound. The relative strength index (RSI) suggests a bullish trend, signaling potential gains ahead.
RSI and Price Movement
The RSI, a tool measuring momentum, began rising early Saturday. After dropping from $134 to $123, it started around 30, indicating oversold conditions. By Sunday, the RSI climbed to 65, showing a recovery in buying momentum. Although it dipped slightly, it has since rebounded to 65.
This increase aligns with the recent rise in SOL's price, hinting at a bullish turnaround. The 30-period moving average has been below the 200-period average for over a week. When the shorter moving average crosses above the longer one, it usually signals a potential upward trend.
Additionally, SOL’s support and resistance levels are converging. Analysts expected the coin to break out of its recent $120 to $130 trading range. As the post above suggests, SOL has reclaimed $135.
Potential for Major Gains
For SOL to keep gaining, significant buying from major investors or “whales” is needed. The last notable transaction was on August 20, when a trader moved approximately $22 million in SOL to Binance.
Despite some recent inactivity, Solana’s strong fundamentals remain solid. The network has grown due to the demand for new meme tokens, becoming a popular blockchain for launching new projects.
Solana processes over 50 million non-vote transactions daily, compared to Ethereum’s one million. Looking ahead, if the broader market continues recovering, Solana’s price could hit $150 by October and $200 by year-end.
With new presale tokens and altcoins making moves, the market could see significant changes. Solana remains a major player, and its current indicators suggest substantial gains could be on the horizon.
The post Solana’s Price Poised for Big Gains; RSI Signals a Potential Rally from Key Support appeared first on Crypto News Land.