$SOL

Solana (SOL) Price Nearing Support: PumpFun Activity Hints at Potential Upside

Solana (SOL) price has dropped by 6% in the last 24 hours, catching the attention of investors. Technical indicators such as the Relative Strength Index (RSI) suggest that the cryptocurrency may be approaching the oversold zone, signaling a potential reversal.

The increased activity on Solana’s main app, PumpFun, hints at renewed user engagement that could positively impact SOL’s performance. These developments pave the way for potential changes in SOL’s price trajectory in the near future.

SOL Nearing Oversold Phase

SOL is currently showing an RSI of around 34.82, a significant decline from around 70 fifteen days ago. This significant decline signals a significant shift in market sentiment, from a bullish phase—where buying pressures were dominant—to a more bearish outlook marked by increased selling activity. The RSI indicator is used to measure the momentum and speed of price movements. The RSI oscillates between 0 and 100, and helps identify overbought and oversold conditions in the market. Traditionally, an RSI reading above 70 indicates that the asset is overbought and may be ready for a price correction, while a reading below 30 indicates that it is oversold and may be ready for a bounce.