Solana Looks Overbought Against Ethereum; BTC-Gold Ratio Stuck in a Downtrend
2024-10-24

The solana-ether (SOL/ETH) spot pair trading on Binance has surged over 15% since Oct. 1, extending the three-month winning trend. The rally now looks overstretched.
The pair's 14-day relative strength index (RSI), an oscillator that evaluates the speed and change of price movements over two weeks, has crossed well above 70, indicating overbought conditions, according to charting platform TradingView. The strongest overbought reading since March comes as the pair set a record high of 0.069 Wednesday on the back of a renewed boom in Solana's network activity.
Note that an RSI above 70 does not imply an end of the bull run and only means the recent upward movement has been a bit too strong and there could be a bull breather or a temporary price correction. A potential pullback might find support at 0.064, the August high.
Some savvy traders see an overbought RSI, especially on longer duration charts, as a sign of bullish solid momentum or evidence of the path of least resistance being on the higher side. As the adage goes, the RSI can stay overbought longer than bears can stay solvent.
BTC/Gold ratio
The ratio between bitcoin's per-piece price and gold's per-ounce price has turned lower after failing to take out trendline resistance drawn off March and June highs. 
The rejection, coupled with the negative crossover on the MACD, suggests continued BTC underperformance ahead. A similar setup in late July led to a protracted decline in the ratio.