Will Solana (SOL) Worth Crash Laborious After Its 30% October Rebound?…

— Ash Crypto (@Ashcryptoreal) January 21, 2024

The potential ETF conversion legitimizes Solana’s place alongside Bitcoin and Ethereum in institutional portfolios, growing publicity for SOL earlier than conventional buyers.

In the meantime, the return of ‘memecoin mania’ added to Solana’s upside increase in October, as FXEmpire’s Ibrahim Ajibade lined right here. Primarily, Solana has benefitted from elevated on-chain exercise and liquidity as merchants and buyers flock to the community.

Historic.

Solana is doing extra quantity than THE ENTIRE ETHEREUM + L2 ECOSYSTEM within the final 24 hours.

Bullish on $SOL. pic.twitter.com/E8UM2fiAlC

— gumshoe (@0xGumshoe) October 20, 2024

Solana Technical Evaluation: A Main Correction Subsequent?

Solana’s value rally has accompanied an increase in its momentum on each day charts, with its relative energy index (RSI) studying now above 70 — an “overbought” zone.

An overbought RSI usually precedes a correction or consolidation interval. In Solana’s case, the following transfer might be a correction, because it trades round a cussed falling trendline resistance constituting a descending triangle sample.

To elucidate, Solana has already damaged above the falling trendline resistance and may technically be eyeing a rally towards $250 within the coming weeks. Nonetheless, an overbought RSI will increase the prospects of a pointy value correction, akin to what the market witnessed within the July-August 2024 session (marked by pink circles).