Solana (SOL) Leading Altcoin Rally, but There's Catch
2025-01-04
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Solana SOLUSD is rebounding well in the cryptocurrency market after the price hit a low of $178 within the last 14 days.
The coin dubbed "Ethereum killer" is currently leading the ongoing altcoin rally in the market. With the asset’s current trading volume up by 6.59% to $3.73 billion and other market dynamics, there are concerns if SOL is overbought.
Solana RSI indicates room for growth but raises caution
According to CoinMarketCap data, SOL's Relative Strength Index (RSI) currently stands at 56.
For clarification, the RSI measures the likely change in price trends and is estimated on a ranging 0 to 100 scale. Traditionally, an RSI above 70 indicates an asset is potentially overbought and suggests a possible price reversal.
On the other hand, an RSI below 30 implies that the asset is likely undervalued and could trigger a price increase. So, SOL’s RSI at 56 shows the coin is neither overbought nor oversold, with future trends hinging on other market forces like correlation with Bitcoin BTCUSD.SOLUSDT 1D Chart. Source: TradingView">
However, for Solana, the market sentiment remains bullish, which could support further rally of the asset to test new price heights.
Notably, within the last 24 hours, SOL’s price has traded between a low of $210.37 and a high of $219.56. As of this writing, SOL was changing hands at $215.60, up 2.13% in the last 24 hours.
This leaves it at an 18.26% surge away from the all-time high (ATH) of $263.83 it hit Nov. 22, 2024.
Bullish sentiment drives optimism for 2025
Analysts consider Solana’s impressive rebound from below $180 to the current level indicative of a likely uptick ahead. As reported by U.Today, SOL kicked off 2025 on a high note, trading above $200 to set a positive outlook for the year.
There are also predictions that the altcoin may finally get its exchange-traded fund (ETF) approved by the regulatory authority. Nate Geraci, the president of ETF Store, believes the stakes are higher than before and the approval might happen this year.
Five asset managers have already filed for a spot Solana ETF, led by New York-based investment firm VanEck. The others include Grayscale, 21Shares, Bitwise and Canary Capital.