Solana's RSI Surges 89% in a Day, Indicating Bullish Momentum

Solana (SOL) is currently attempting to recover from a significant correction of nearly 12% over the past week. The Relative Strength Index (RSI) has surged into overbought territory, indicating strong bullish momentum. However, the BBTrend remains deeply negative, suggesting potential stabilization but not a full reversal. Meanwhile, Ethereum has surpassed Solana in decentralized exchange (DEX) volume for the first time in six months, adding complexity to Solana's technical picture.

The RSI for Solana has jumped to 72.91 from 38.43 in just a day, reflecting a rapid shift from neutral to strongly bullish territory. An RSI above 70 typically suggests that an asset is overbought and may be due for a pullback. However, this can also signal the start of a breakout rally. Traders should closely monitor for signs of continuation or exhaustion, as any stalling could trigger profit-taking and short-term volatility.

Solana’s BBTrend indicator has slightly improved to -11.18 from a low of -12.68, indicating that bearish momentum is starting to ease. Values below -10 typically indicate strong bearish pressure, while values above +10 reflect strong bullish momentum. A rising BBTrend from deep negative territory can be an early sign of a potential reversal or at least a slowdown in the downtrend. However, broader ecosystem developments, such as Ethereum surpassing Solana in DEX volume, complicate the technical picture. Until there is stronger confirmation, cautious optimism is warranted, but the bears haven’t fully let go.

Solana’s EMA lines are showing signs of an impending golden cross, which occurs when a short-term moving average crosses above a long-term one. This is often seen as a bullish signal that can mark the start of a sustained uptrend. If this pattern is confirmed and buying momentum continues, Solana’s price could push up to test the resistance at $131. A successful breakout above this level may open the door to further gains toward $136, and potentially even $147. However, downside risks remain if buyers fail to hold recent gains. If SOL pulls back and loses the key support at $124, it could trigger further selling pressure, pushing the price down to $120. Should the downtrend gain strength from there, SOL might revisit deeper support levels around $112.