Popular cryptocurrency YouTube channel InvestAnswers reports that a historical indicator is giving a bullish signal on Ethereum (ETH) rival SOL coin.
In a new video, the analyst said that Solana is in an uptrend, but SOL coin is facing significant resistance at the $150 level.
“We are about to touch the 200-day moving average. After such a big rally, we expect to breathe a bit, which is normal. The 200-day moving average is also coincidentally at the Fibonacci 0.5 level, which is around $150. Getting above $150 may take some effort, but the strength has been mind-blowing for the past 18 days.”
The analyst also shared a chart showing the divergence between the price of Delphi Digital’s SOL and the rising relative strength index (RSI). The signal in question is generally considered bullish by technical analysts, as it suggests buying side momentum is increasing.
If the past is any indication, the SOL could experience a serious price increase.
“Here you can see that they have created a picture that focuses on two things… RSI divergences in Solana are in a very interesting contrasting trend they have drawn here. You can see the red boxes below the RSI. When the RSI breaks above 70, it’s time for big bullishness because historically, Solana went wild when this happened.
The other thing is they point to an ‘SR’. This is basically the SR transformation that happens when the previous resistance turns into support or support turns into resistance.
The big takeaway here is what you will see in the red boxes to the left every time… Every time the RSI bounces above 70, it is usually in the overbought region after a strong uptrend. But when you look back in time, this event was in August 2021, when the RSI was above 70. When it came out, Solana rose 400% and similarly rose 268% in May and June 2021. I’m not saying it will happen now, but these fractals are similar to Solana’s recent performance.”
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.