Solana is currently retracing after breaking the $120 resistance. Jubilations trailed the milestones as it meant that the asset might still hit $150 this year.
During the previous intraday, most feared more downtrends after the coin’s failure to break the said barrier. This comes after it surged to a high of $112 following its start at $107. Nonetheless, it ended the session at $112, which signifies a more than 4% increase.
The most recent milestone is an indication that SOL is back on the uptrend. A closer look at the candle suggests that it had its fair share of bearish actions. This is evident as it dipped to a low of $108 but rebounded and tested $120. The current price indicates that it had some corrections after peaking at $125.
However, indicators are pointing to an impending downtrend. For example, the Relative Strength Index surged above 70 a few days ago. This comes after the Moving Average Convergence Divergence displayed a positive signal. It showed that the asset had a bullish divergence.
Is RSI Reading a Cause for Concern?
This is not the first time Solana is seeing this sort of trend. Last month, during the peak of the uptrend, RSI reached a high of 88. It is also worth noting that the metric has been above 70 since October 19. However, it dropped below the boundary on the sixteenth day of November. This meant that it remained above the mark for almost thirty days.
It’s hard to conclude that the same may happen this time. Nonetheless, this furthers the conviction of further price increases as the bulls may maintain the momentum.
