Solana is showing signs of bottoming as the relative strength index indicator has reached FTX crash levels. “History doesn’t repeat, but it rhymes,” says analyst Lark Davis. If Solana closes above the $80 level, the $95 price range would be in play, and this would lead SOL to hit three digits in the coming days.
SOL RSI drops levels last seen during FTX crash
Analyst Lark Davis spotted the RSI hovering around the same area as it was during the FTX crash. When the RSI drops to this level, it signals oversold conditions and suggests the market could be bottoming.
The RSI is a momentum indicator that measures the speed and magnitude of price movements, with readings below 40 generally signaling oversold conditions. When the RSI reaches such extreme levels, it suggests that selling pressure may be becoming exhausted and the pace of the decline is slowing.
Historically, these conditions have often coincided with market bottoms or periods of accumulation before a recovery. However, while an oversold RSI can hint at a potential reversal, it does not guarantee that the price has reached its ultimate bottom and should be confirmed with other technical indicators. Hence, Davis stated,, “History doesn’t repeat, but it rhymes.”
SOL has lost the 50-day MA and it may have a hard time recovering
Echoing with Davis, another trader also mentioned that SOL was compressing below the multi-month trendline, and if it closes the day defending the $80 level, it may have a shot at hitting the $95 level. Once this level has been established, it could reach above triple digits.
However, SOL is currently priced at $72, much below the level the trader expects it to be. Having lost the 50-day moving average, the coin could go through a tough recovery, as it there could be much resistance near the 50-day MA.
But although SOL has lost the 50-day MA, there is a glimpse of hope as the coin is still rebounding inside the symmetrical triangle. In a symmetrical triangle, the coin usually makes lower highs and higher lows until the apex and breaks in either direction. The bottom line is that although SOL is far below the $80 level, it could recover, as Davis correctly pointed out that it has reached FTX levels on the monthly chart.
