Solana (SOL) rose nearly 9% in the past 24 hours, surpassing $140 for the first time since March 8th. This is in contrast to BNB becoming the largest chain in DEX trading volume last week.
While price movement has strengthened, the Solana market still shows mixed signals. Some large investors continue to maintain a cautious attitude. Traders are watching key resistance and support levels to determine whether SOL can sustain its rally or face a potential correction.
Solana RSI Exceeds 70 for the First Time Since March 2nd
Solana's RSI suddenly surged from 52.46 yesterday to 72.91 today, entering the overbought area for the first time since March 2nd.
This sharp increase indicates that buying momentum suddenly accelerated after nearly two weeks of remaining at neutral levels in the mid-50s.
Crossing the 70 level suggests a significant shift in market sentiment, pushing traders into a more aggressive bullish stance on SOL.
The Relative Strength Index (RSI) is a momentum measurement indicator that tracks price movement speed and changes. It helps traders identify potential overbought or oversold conditions.
Generally, an RSI value over 70 is considered overbought, indicating a potential asset correction. Values below 30 are considered oversold, suggesting a possible price reversal. Solana's current RSI of 72.91 emphasizes a strong upward trend but also raises caution about a potential short-term correction, especially as BNB overtakes Solana in DEX trading volume.
Since SOL has been trading in a neutral range for the past 12 days, this sudden surge could signal the start of a stronger rally or represent a temporary price momentum overheating.
SOL Whales Still Hesitant
The number of Solana whales, defined as wallets holding at least 10,000 SOL, is currently 5,019, slightly decreased from the recent high of 5,041 recorded on March 18th.
This fluctuation emphasizes the ongoing changes in large holder behavior, indicating that whale activity has not yet fully stabilized. The recent whale count is higher than early this month but suggests large investors are still hesitant to fully re-enter the market.
Tracking whale activity is crucial. These large holders often significantly impact market trends and liquidity. An increase in whale addresses suggests the token is being accumulated by 'big players' and investor confidence is growing. Conversely, a decrease in whale addresses can be interpreted as tokens being distributed to retail investors, signaling caution about potential decline.
The current whale count showing volatility and slightly retreating from recent peaks suggests major players are still uncertain about Solana's short-term direction.
Until these numbers show more consistent growth, SOL's price may remain sensitive to fluctuations and lack the solid support typically seen in a strong upward trend.
Can Solana Maintain Current Levels?
Solana's moving averages recently confirmed a golden cross, suggesting potential for continued strength. Additional golden crosses may form soon.
If the current upward momentum strengthens, Solana's price could challenge resistance at $152.90, and with sustained momentum, potentially rise to $180.
While there are concerns in the community about competition between PumpFun and Raydium, Chris Chung, founder of Solana-based exchange platform Titan, argues this competition could benefit Solana's broader ecosystem:
"It was inevitable for Pump.fun to launch their own DEX. They believe they now have a strong enough brand to remove the Raydium tech stack and directly collect AMM fees. Additionally, Raydium is planning its own launchpad, showing how quickly competition is heating up in the Solana ecosystem. It's great to see new players entering with ideas to improve user experience. Such competitive actions help build robust financial products and DeFi protocols and simply increase Solana's activity," Chung told BeInCrypto.
However, if upward momentum weakens and the trend reverses, SOL could retest the key support level at $136.71.
Falling below this level could lead to further Solana decline, with selling pressure potentially targeting prices of $120 and potentially $112.
