The cryptocurrency has recently reached new highs and now its RSI (Relative Strength Index) is showing a leveling effect at the top. This pattern can be compared to the double top pattern in traditional RSI analysis, in which the RSI reaches comparable high levels, forming a ceiling of sorts twice.
Double tops often indicate a possible reversal on regular price charts, but in the case of the RSI they can actually reinforce the idea of a trend continuation rather than a reversal. The fact that Bitcoin’s RSI is currently in the 70-80 range indicates that the asset is slightly overbought but still holding. Historically, long bull runs, rather than sharp declines, have often accompanied Bitcoin’s RSI rise above 70. Strong buying momentum is indicated by the fact that it is holding at this level without experiencing a significant correction.
Bitcoin recently surpassed $75,000, a crucial psychological and technical barrier, and broke through important resistance levels. Bitcoin is following an upward trend in terms of prices and the current price action is indicating strong support. Bitcoin has a good chance of continuing to strengthen as long as it remains above $70,000. Consistent with previous areas of consolidation, $69,000 is one support level to watch. Fortunately, if Bitcoin continues its current trend, it could reach $78,000 or even higher.
The remarkable volume accompanying this move further strengthened the bullish sentiment. As recently noted, a high volume breakout usually signals real interest rather than a passing pump. Any change in volume trends should be viewed by investors as a sign of changing sentiment.
Cardano price recovers
With prices rising noticeably in recent days, Cardano has finally seen a noticeable rise in value. ADA demonstrated such strong growth for the first time since February, breaking through numerous resistance levels and attracting the attention of investors. The jump came as bullish sentiment on the asset was bolstered by ADA’s rise above the $0.40 mark, sending it up around 6% on the day.
ADA’s ability to break through the $0.35-$0.36 resistance zone, which has served as a recalcitrant barrier for months, is a major factor driving this rally. ADA was able to test higher levels after breaking through this zone and the move has strong support due to the sharp increase in volume.
Investor confidence is also likely boosted by the development of the Cardano network and growing ecosystem. Technically, ADA broke above its 50-, 100-, and 200-day moving averages, indicating the possibility of a long-term uptrend. Following the recent improvement in macroeconomic sentiment, major assets are gaining momentum and current price action is in line with these broader market trends. But it’s important to approach this expansion with a healthy dose of optimism.
Although ADA is showing positive performance, the asset may be approaching overbought territory as its Relative Strength Index (RSI) has risen above 70. This could lead to a short-term decline, giving investors a chance to lock in their gains before a possible continuation of the uptrend.
ADA may look to test the next significant resistance level, which is located around $0.50, if it can hold support above $0.40 and continue its upward trajectory. However, a decline below $0.40 could trigger a retest of support in the $0.35 range. ADA may finally be in the early stages of a broader recovery trend based on Cardano’s price action, which is currently a positive development.
Solana is back
The psychological barrier of $200 has been broken by Solana (SOL), which if momentum continues could pave the way to an all-time high. This is a major achievement for the blockchain platform, which has seen a surge in online activity and popularity, especially in the meme coin industry. This recent milestone signals renewed bullish sentiment. The surge in on-chain activity is fueling Solana’s current growth, attracting more users and projects to the platform.
The thriving DeFi ecosystem, where fast transactions and affordable SOL fees make it a desirable replacement for other networks, also supports this expansion. Demand for SOL is growing, pushing up its price as more users interact with NFTs and app tokens on Solana as the platform grows. From a technical perspective, reaching $200 creates a solid foundation for future upward movement.
SOL could reach its all-time high around $260 if it breaks the next significant resistance level, which is located around $216. Maintaining this price could encourage additional buying pressure and help the asset continue its upward trend. The $200 level currently serves as support.
The strength of this rally is also reflected in the relative strength index (RSI), which remains above 70, which typically indicates strong buying interest. However, high RSI readings should alert investors to any signs of excessive expansion. For further development of SOL, sustainable growth in volumes and constant network activity are required.
