Solana (SOL) is recovering well in the cryptocurrency market after hitting a low of $178 in the last 14 days.
The coin dubbed the “Ethereum killer” is currently leading the ongoing altcoin rally in the market. Given the asset’s current trading volume of 6.59% to $3.73 billion and other market dynamics, there are concerns that SOL will be overbought.
Solana’s RSI indicates room for growth, but caution
The SOL Relative Strength Index (RSI) currently stands at 56, according to CoinMarketCap data.
To clarify, RSI measures the likely change in price trends and is rated on a scale of 0 to 100. Traditionally, an RSI above 70 indicates that an asset is potentially overbought and suggests a possible price reversal.
On the other hand, an RSI below 30 means that the asset is likely undervalued and could trigger a rise in prices. Thus, an RSI SOL of 56 shows that the coin is neither overbought nor oversold, and future trends depend on other market forces such as correlation with Bitcoin (BTC).
However, for Solana, market sentiment remains bullish, which could support further growth of the asset to test new price heights.
Notably, over the past 24 hours, the price of SOL has traded between a low of $210.37 and a high of $219.56. At the time of writing, SOL shares were changing hands at $215.60, up 2.13% in the last 24 hours.
Thus, it is up 18.26% from the all-time high (ATH) of $263.83 reached on November 22, 2024.
Bullish sentiment inspires optimism for 2025
Analysts believe Solana’s impressive rebound from below $180 to current levels points to likely upside ahead. As reported by U.Today, SOL started 2025 on a high note, trading above $200, setting a positive outlook for the year.
There are also predictions that the altcoin may finally receive regulatory approval for its exchange-traded fund (ETF). Nate Geraci, president of the ETF Store, believes rates are higher than before and approval could happen this year.
Five asset managers have already submitted bids for the Solana spot ETF, led by New York investment firm VanEck. The others include Grayscale, 21Shares, Bitwise and Canary Capital.
