Market Overview for Solana/Yen (SOLJPY) - 2025-11-07

Summary
• Price rose from 23800 to 24312 before consolidating.
• High volatility seen with 24-hour range of 757 Yen.
• Volume surged to 424.596k, with turnover peaking during late ET hours.
• Strong bullish momentum seen on MACD and RSI, but signs of overbought conditions.
• Key support at 23758 with resistance forming near 24200.

Structure & Formations

The 24-hour chart for Solana/Yen (SOLJPY) displayed a strong bullish bias, with the price rising from an opening of 23800 to a high of 24312 Yen before consolidating around 24137 Yen at 7:15 ET. Key resistance levels are forming near 24200–24300, with a bearish engulfing pattern visible as the price pulled back from the high. A potential bullish flag pattern may be forming after the sharp rally. Notable support is observed at 23758 Yen, where the price tested and rebounded multiple times.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages are trending upward, with the 20 MA crossing above the 50 MA, signaling a potential continuation of bullish momentum. On the daily chart, the 50 MA sits just below the 200 MA, suggesting a possible retest of the 200 MA (23930–24000 range) as a critical level. Price appears to be aligning with the 200 MA, indicating a potential consolidation phase.

MACD & RSI

The MACD line is positive and trending upward, with the histogram expanding, suggesting strong bullish momentum. RSI has pushed into overbought territory (above 70) during the rally to 24312, indicating potential for a pullback or consolidation. However, the RSI has not yet shown signs of divergence with price, which may suggest the bullish trend could continue unless RSI fails to break above previous highs in the coming sessions.

Bollinger Bands

Volatility expanded during the rally, with the price moving well above the upper Bollinger Band. The bands have widened, signaling heightened uncertainty or speculation in the market. As the price pulls back from the upper band, it is currently hovering near the 24200–24300 range, a critical zone for retracement and consolidation. A break below the middle band would suggest a shift in sentiment.

Volume & Turnover

Volume was strong during the rally, with a notable spike seen at 2:45 AM ET (24150–24269 Yen) and again at 5:15 AM ET as price surged to 24188. Turnover aligned with volume, particularly in the late ET hours. No significant divergence is observed between price and volume, which supports the continuation of the bullish trend. However, the volume profile shows a slight tapering during the consolidation phase, which may signal weakening momentum.

Fibonacci Retracements

On the 15-minute chart, the 38.2% retracement level is at approximately 24130 Yen, which the price has tested twice. The 61.8% level is around 24000 Yen, a potential support zone. On the daily chart, the 61.8% Fibonacci level lies at approximately 24150 Yen, which aligns with the consolidation phase. The price may retest this level before either continuing higher or correcting lower.

Backtest Hypothesis

A potential backtest could use the RSI indicator to gauge overbought conditions and trigger sell signals when RSI exceeds 70. Given the recent overbought readings, such a strategy could help manage risk during a consolidation phase. Assuming a one-day holding period and daily closing entries, the backtest would assess the efficacy of exiting bullish positions during overbought conditions. This aligns with the current technical landscape, where a controlled pullback may offer more favorable entry points.