Compass Investments

– Solana’s (SOL) price approached support: activity on PumpFun indicates a possible bounce

The RSI index for SOL fell to 34.82, approaching an oversold zone, indicating a possible price reversal.

Activity on PumpFun’s Solana is on the rise again, indicating renewed user activity, which could have a positive impact on SOL prices.

SOL could test the $133 or $110 support level, but the increased interest in PumpFun could push the price back to $162.

Solana (SOL) has fallen 6% in the last 24 hours, attracting investors’ attention. Technical indicators such as the Relative Strength Index (RSI) indicate that the cryptocurrency is approaching an oversold zone, suggesting a potential reversal.

The increased activity on Solana’s main app, PumpFun, suggests that user activity is on the rise again, which could have a positive impact on SOL. These developments point to a possible reversal of SOL’s price trajectory in the short term.

The SOL RSI Index is currently at 34.82, which is a notable decline from the level of 70 just 15 days ago. This significant decline indicates a significant shift in market sentiment from a bullish phase, dominated by buying pressure, to a bearish phase, characterized by increased selling activity. RSI is a technical indicator used to determine the momentum and speed of price movement.

The RSI, fluctuating in the range from 0 to 100, RSI helps to identify overbought and oversold markets. Traditionally, an RSI reading above 70 is considered overbought and indicates that a correction is expected, while a reading below 30 is considered oversold and indicates that the market is ready to rebound.

If the RSI SOL is approaching 30, the oversold threshold, it indicates that the coin has reached a point where selling pressure has eased and buyers are likely to take action.

Such a scenario often precedes a trend reversal, which market participants may consider undervalued and asset prices will start to rise. Therefore, based on RSI readings, Solana prices may be poised for a rebound and an uptrend may be in sight as investors look to take advantage of falling prices.

Can a new coin boost Solana’s price?

PumpFun, Solana’s largest application in the past few months, may serve as a strong indirect indicator of the overall health and activity of the Solana blockchain Recent developments in PumpFun may signal the return of the mimcoin craze to the SOL ecosystem and could have a positive impact on SOL prices.

The number of unique tokens launched on PumpFun reached an all-time high of 20,465 on August 13, but then declined precipitously, falling to 4,629 on September 14.

Historically, a significant increase in the number of tokens launched on PumpFun has been followed by a significant increase in the SOL price. Notably, in late September, the number of new tokens launched daily on PumpFun began to increase again, reaching at least 13,000 per day between September 26 and October 1.

Such a revival may indicate that the Solana blockchain is once again attracting users, which could have a positive impact on the price of SOL, as increased activity often correlates with increased investor interest and demand.

SOL price forecast: will it soon return to $162?

Solana is showing signs of a trend reversal. The line of the short-term exponential moving average (EMA) is approaching the intersection with the long-term EMA. This formation is known as the “death cross”. This pattern in technical analysis indicates the possibility of a bearish impulse and a possible decline in price in the near future. The EMA is an indicator that focuses on recent prices and helps traders understand market trends.