The Solane market, the fifth largest cryptocurrency market by market cap, has witnessed a rise of 12.6% in the last seven days. At the start of this month, the SOL price was at $152.52. Now, it stands at $172.83. This indicates that so far, the market has seen a rise of 13.31%.
As the cryptocurrency community is discussing the notable market momentum of Solana, a new analysis report regarding the momentum of the SOL/ETH pair on Binance has been released. It has revealed that the pair’s RSI index recently entered an overbought region. Could this impact the current positive momentum of Solana? Let’s try to understand the market scenario better.
Solana General Market Analysis
On the first day of the month, the price of Solana was at $152.52. Solana also faced the heat of the general crypto market turbulence created by the Middle East geopolitical tension, as it dropped to a low of $136.84 on October 3. On October 14, after several failed attempts to recover from the drop caused during the period of market turbulence, it finally broke above the opening price of October 1, marking a peak of $157.62. Altogether, in the following days, sellers made a few attempts to pull the price lower, they could not undo the massive momentum gained on October 14.
On October 18, buyers regained their strength and pushed the price upwards. In the period between October 18 and 23, the market recorded a massive surge of 13%. At present, the market appears extremely bullish.
Solana/Ethereum Trading Pair: What We Observe
The price of Solana in the SOL/ETH chart, at the start of this month, was 0.05928 ETH. Till October 17, the market had been moving sideways, hovering between 0.05778 ETH and 0.06001 ETH. Since October 18, the price has risen consistently, registering a notable growth of 18.33%.
Applying the RSI indicator to the daily chart of the SOL/Ethereum pair shows that the index remains at the overbought region of 78.17.
Entering the overbought region is generally regarded as a signal for a price correction.
However, it is not guaranteed that the Solana market will see a price correction soon. It could be an indication that there is a chance for the market to cool down before it moves further upwards.
What If a Pullback Occurs in the Sol/ETH Market?
At present, the price of SOL in the SOL/ETH chart remains at 0.06862 ETH. A recent report has highlighted the existence of support at 0.06181 ETH – August’s monthly peak. If a strong pullback occurs, the market might drop to this support level.
In conclusion, while an overbought RSI often signals a potential correction, many experts view this as a sign of strong momentum. For now, the general sentiment behind Solana price predictions remains optimistic.
Stay tuned to Coinpedia for the latest updates on Solana’s price momentum
