- SOL price surged to an 11-month high of $36.41 this week amid rising market activity and demand, demonstrating increasing faith in Solana’s potential
- Bullish momentum has propelled SOL upward between $35.7 and $32.53 in the last 24 hours, with the psychological $40 level as the next potential target
- However, technical indicators show SOL is overbought with an RSI of 98.45, suggesting the price is due for a correction or consolidation before potentially resuming its upward trajectory
Solana has seen impressive growth recently, with the price of its SOL token surging to an 11-month high. This upward momentum demonstrates increasing faith in Solana’s potential. However, signs of overvaluation suggest a correction may occur soon.
SOL Price Hits 11-Month High of $36.41
SOL soared to $36.41 this week, its highest level since November 2021. This surge comes after the price recovered from a weekly low of $29.93. SOL’s market capitalization and 24-hour trading volume also climbed significantly, to $15.11 billion and $1.45 billion respectively. This rising market activity indicates considerable demand for SOL both short-term and long-term.
Bullish Momentum Propels SOL Upward
In the last 24 hours, bulls managed to push SOL prices between $35.7 and $32.53. This range shows the considerable purchasing pressure in the market, as investors accumulate SOL tokens. If this momentum continues past $36.41, the psychological $40 level may be the next target. Hitting new highs would further validate Solana’s positive outlook.
Overbought Signals Hint at Potential Pullback
However, the technical indicators tell a cautionary tale. The 4-hour MACD is in the positive zone with a high rating of 1.09, reflecting the strong bullish momentum. But the stochastic RSI of 98.45 shows SOL is now overbought. This overvaluation suggests the price is due for a correction.
Traders should be wary of a downturn and consider taking profits or using risk management. If bulls fail to break $36.41, consolidation or a modest dip could occur before another push upward. A negative shift in sentiment could also drop SOL below $32 or $30 temporarily.
