Solana (SOL) price has risen 12% over the past week, and recent developments suggest there could be even more room for growth. With the Relative Strength Index (RSI) dropping to 61 from overbought territory, SOL now has space to move upward without immediate selling pressure.
Additionally, the impressive activity on Pumpfun, one of Solana’s biggest applications, is fueling user engagement and ecosystem growth. Both the cooling RSI and the surge in Pumpfun metrics could be key drivers for further price increases in the coming days.
SOL RSI Is Below the Overbought Stage
SOL’s RSI has recently dropped to 61, down from over 70 just a day ago. This shift suggests that the buying pressure has cooled down a bit, moving away from overbought conditions. An RSI above 70 often indicates that an asset is overbought and a pullback is likely.
Now that the RSI is below that critical threshold, it signals that there could be room for the price to continue its upward movement without facing immediate selling pressure.
Read more: 13 Best Solana (SOL) Wallets To Consider in October 2024
The Relative Strength Index (RSI) is a momentum indicator that measures the speed and change of price movements. It ranges from 0 to 100, with values above 70 indicating an overbought condition and values below 30 suggesting an oversold state.
Despite SOL price being up by 12% over the past seven days, the recent drop in RSI below 70 could be a positive sign. It implies that the recent surge wasn’t excessively overextended, leaving space for further gains. With RSI now below the overbought level, there may be more potential for price growth in the coming days.
