An analyst has found that Solana (SOL) is currently following a trend that is similar to the one that caused a big price jump in 2021.
Analyst Ali Martinez recently wrote on X that Solana’s recent price pattern is a lot like its path from July of three years ago. The 3 days price chart for SOL is moving in a way that looks a lot like what happened in 2021. The Relative Strength Index (RSI) is also staying close to the same level.
The RSI is a technical analysis tool that shows how quickly and how much the price of SOL has changed recently. It is often used to see if the price of an object is fair. If the RSI number is above 70, it means that the cryptocurrency may be overvalued, which could lead to price corrections.
Solana price update
On the other hand, an RSI below 30 could mean that the market is oversold, which means that prices might reach a bottom.SOL RSI is around 40 right now, which suggests that the stock may be cheap. In 2021, for example, a similar RSI level came before a significant bullish rise for the cryptocurrency.
Since the price trend and RSI readings are very similar, Solana may be about to go through another surge. We don’t know if this pattern will repeat itself or go in a different way.Besides that, there was a big deal regarding Solana not long ago.
A cryptocurrency transaction tracker called Whale Alert says that an unknown wallet, most likely a personal account, received 287,019 SOL from a SOL whale. This amount was worth over $40.3 million at the time. This move makes it look like the whale might be getting ready to sell. Solana’s price dropped to about $128 after the deal, but it has since gone back up.
Right now, the price of Solana is around $141, which is less than 8% of what it was a week ago.
