🤩 SUNNY TO THE CLOUDS 🤩
Solana (SOL), in the last two weeks, has seen a significant rise according to the weekly chart of the SOL/USD pair on TradingView. The horizontal trend line resistance in its ascending triangle channel has been broken, indicating bullish strength. Should this ascending triangle be confirmed, a bullish target for SOL price is projected around $90 before the end of the year, representing an impressive 50% increase from its current level.
However, bearish investors point to the weekly Relative Strength Indicator (RSI), which has reached its most overbought level since September 2021. This data suggests a significant risk of correction, increasing the likelihood of SOL price retracing towards the upper trend line of the triangle, situated near $30. Overbought could trigger a bearish reaction, highlighting the importance of monitoring RSI developments to assess the short-term health of the market.
In summary, Solana's impressive rise is attributed to the breakout of resistance in its ascending triangle. However, the overbought warning on the RSI raises the risk of a correction towards $30, underscoring the importance of closely monitoring these indicators to better understand market dynamics and make informed decisions.
