These 2 Indicators Suggest Further Potential for Solana (SOL) Price Growth
Solana (SOL) has experienced a 12% increase in price over the past week, and recent developments point to the possibility of even more gains. Two key metrics, the Relative Strength Index (RSI) and the activity on Pumpfun, provide reasons to believe that SOL’s price could continue to rise in the near future.
The RSI is currently below the overbought stage, with a reading of 61 compared to over 70 just a day ago. This indicates that the buying pressure has cooled down, creating room for the price to move upward without immediate selling pressure. An RSI above 70 usually suggests that an asset is overbought and due for a pullback, so the drop in RSI is a positive sign for SOL.
Pumpfun, one of the major applications on the Solana platform, has been experiencing record activity. Over the past week, the platform has seen more than 20,000 coins launched per day, reaching an all-time high of 34,094 coins. Pumpfun now accounts for nearly 50% of daily decentralized exchange (DEX) transactions and volume on Solana. This high level of engagement could potentially lead to a new price surge for SOL, as it has in the past.
In previous instances, the increase in coin launches on Pumpfun coincided with SOL’s price rising significantly. For example, between March and April, SOL’s price surged from $107 to $209 as Pumpfun activity reached new heights. The current spike in coin launches on Pumpfun could indicate a similar trend and drive SOL’s price higher once again.
From a technical analysis perspective, SOL is currently trading above all the exponential moving average (EMA) lines, indicating strong bullish momentum. The alignment of the EMA lines, with shorter-term EMAs above the longer ones, further supports the positive trend and suggests potential for continued growth.
If SOL manages to break above the resistance level at $182.46, it could soon test $194.04, its highest price since July. Key support areas are marked at $165.37 and $147.55, which are essential for maintaining the current upward trend.
Overall, the cooling RSI and the surge in Pumpfun activity indicate further upside potential for Solana’s price in the near term.