An analyst has defined how Solana (SOL) is presently mirroring the identical sample that led to a bullish breakout for its value again in 2021.
Solana Seems To Be Displaying Comparable Pattern To 2021 Proper Now
In a brand new publish on X, analyst Ali Martinez has mentioned about how the sample not too long ago forming in SOL has been paying homage to what the cryptocurrency confirmed again within the July of three years in the past.
Associated Studying
Under is the chart shared by the analyst, that highlights the similarity between the 2 intervals:
As is seen within the graph, the Solana 3-day value has to date proven a trajectory that has been just like the one in 2021. Not solely that, the present Relative Power Index (RSI) can also be at across the similar stage because the one again then.
The RSI refers to an indicator in technical evaluation (TA) that mainly measures the velocity in addition to the magnitude of the current modifications occurring in SOL’s value. This momentum indicator is mostly used for figuring out whether or not the asset’s value is honest or not.
When the indicator has a worth larger than 70, it’s a possible signal that the cryptocurrency is turning into overvalued as its value is rising too rapidly. As such, corrections can grow to be extra doubtless on this area.
Alternatively, the metric being underneath 30 implies a potential oversold situation is forming within the asset, that means {that a} backside might be possible to kind in its value.
From the chart, it’s seen that the RSI is at round 40 for Solana presently, suggesting that the asset is barely leaning in the direction of being undervalued. Curiously, again in 2021, this similar RSI stage led to an enormous bullish breakout for the cryptocurrency.
Provided that the coin’s value has proven an analogous trajectory as again then, and its RSI has additionally been just about the identical, it’s potential that one other surge may begin for Solana from right here. It now stays to be seen if previous sample will repeat for the asset or if it should comply with a brand new path fully.
Associated Studying
In another information, a SOL whale made a large transfer on the blockchain simply a few days in the past, based on knowledge from the cryptocurrency transaction tracker service Whale Alert.
The transfer, which concerned the switch of 287,019 SOL (equal to over $40.3 million on the time the transaction was executed), travelled from an unknown pockets, prone to be the whale’s private tackle, to an alternate: Binance.
Thus, given the path, it’s potential that this humongous holder had made the deposit for promoting functions. Quickly after the transfer had come, the asset’s value had seen a dip in the direction of the $128 mark, suggesting that the whale had performed a task or had at the very least anticipated the drop. Regardless of the case be, although, Solana has already made restoration from the drawdown.
SOL Value
On the time of writing, Solana is buying and selling round $141, down greater than 8% over the previous week.
Featured picture from Shutterstock.com, whale-alert.io, charts from TradingView.com
