Solana (SOL) price is currently down 6% in the last 24 hours, drawing the attention of investors. Technical indicators, particularly the Relative Strength Index (RSI), suggest that the cryptocurrency may be nearing oversold territory, which could indicate a potential reversal.
Heightened activity on Solana's major application, PumpFun, hints at renewed user engagement that might positively influence SOL's performance. These developments set the stage for potential changes in SOL's price trajectory in the near future.
SOL currently exhibits an RSI of approximately 34.82, a notable decrease from around 70 just fifteen days ago. This substantial drop indicates a significant shift in market sentiment, moving from a bullish phase — characterized by dominant buying pressure — to a more bearish outlook marked by increased selling activity.
The RSI is a technical indicator used to gauge the momentum and speed of price movements. Oscillating between values of 0 and 100, the RSI helps identify overbought and oversold conditions in the market. Traditionally, an RSI reading above 70 suggests that an asset is overbought and may be due for a price correction, while a reading below 30 indicates it is oversold and could be primed for a rebound.
PumpFun, Solana's biggest application in recent months, serves as a strong proxy for the overall health and activity on the Solana blockchain. Recent trends on PumpFun indicate that the memecoin mania within the SOL ecosystem might be making a comeback, which could positively influence SOL's price. On August 13, the number of unique tokens launched on PumpFun reached an all-time high of 20,465 but then experienced a dramatic decline, dropping to just 4,629 by September 14.
Solana is exhibiting signs of a potential trend shift. Its short-term Exponential Moving Average (EMA) lines are nearing a crossover below the long-term EMAs. This formation is known as a...
