Popular crypto YouTube channel InvestAnswers says a historical indicator is in favor of an Ethereum (ETH) competitor.
Anonymous analyst, who made statements in a new video, says that Solana is in an uptrend, but SOL is facing significant resistance at the $150 level.
“We are about to touch the 200-day moving average. We expect what we call a little respite after such a big run, 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.”
Analyst shares a chart from Delphi Digital showing a divergence between the price of the SOL and the rising relative strength index (RSI); This is generally considered bullish by technical analysts as the signal suggests the buy side momentum is increasing.
“You can see that they have created a picture here that focuses on two things… The RSI divergence in Solana is in a very interesting contrasting observation that they draw here. You can see the red boxes below the RSI. It’s bullish time when the RSI breaks above 70 because historically, Solana has gone wild when this happens. The other thing refers to an ‘SR’ and that is basically the SR turn which is when the previous resistance turns into support and support turns into resistance.
The big takeaway here is what you’ll see in the red boxes to the left each time… Every time the RSI goes above 70, it’s usually in the overbought zone after a strong price spike. But when you look back in time, this means that in August 2021, when the RSI broke above 70, Solana was up 400% and similarly 268% in May and June 2021. I’m not saying it will happen now, but these fractals are similar to Solana’s recent performance.”
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