Is Solana (SOL) Price Ready for Another Breakout at $194?

Solana (ground) price has risen 12% in the past week, and recent developments suggest there may be even more room for growth. With the relative strength index (RSI) falling to 61 from overbought territory, SOL now has room to move higher without immediate selling pressure.

Additionally, the impressive activity on Pumpfun, one of Solana’s largest apps, is fueling user engagement and ecosystem growth. Both the cooling RSI and rising Pumpfun values could be key drivers for further price gains in the coming days.

SOL RSI is below the overbought stage

The SOL RSI recently dropped to 61, down from over 70 just a day ago. This change suggests that buying pressure has cooled a bit, moving away from overbought conditions. An RSI above 70 often indicates that an asset is overbought and a pullback is likely.

Now that the RSI is below that critical threshold, it signals that there could be room for price to continue its upward movement without immediately facing selling pressure.

The Relative Strength Index (RSI) is a momentum indicator that measures the speed and change of price movements. It ranges from 0 to 100, with values above 70 indicating an overbought condition and values below 30 suggesting an oversold condition.

Despite SOL price being up 12% over the past seven days, the recent drop in the RSI below 70 could be a positive sign. This implies that the recent rally has not been overly extended, leaving room for further gains. With the RSI now below the overbought level, there may be more upside potential in the coming days.

Can Pump.fun Metrics Drive Solana’s Growth?

Pump.funone of the largest apps in the Solana ecosystem, recently set record after record. Since October 14th, the platform has launched over 20,000 coins per day, reaching an all-time high of 34,094 coins on October 22nd.

This increase in coin launches is significant as Pumpfun now accounts for nearly 50% of the daily DEX transactions and volume in the Solana ecosystem. Such a high level of involvement could lead to another price increase for Solana, just like what happened between March and April.

PumpFun tokens released per day. Source: Dune

Back then, the exponential growth of coins launched on Pumpfun coincided with the rise of SOL’s price from $107 to $209 in just three weeks. Increased activity signals greater user engagement, which could naturally push the SOL price up again.

SOL Price Prediction: Back to $194 Soon?

SOL is currently trading above all EMA lines, reflecting strong bullish momentum. The short-term EMA acts as immediate support, indicating that buyers are actively intervening during minor pullbacks.

The alignment of the EMA lines, with the shorter-term EMAs above the longer ones, further supports this positive trend, showing healthy potential for continuation.

SOL EMA lines and support and resistance. Source: TradingView

If SOL manages to break above $182.46, it could test $194.04 soon, the highest price since July. Support zones are marked at $165.37 and $147.55 – both of which are crucial for maintaining the current uptrend.

The EMA setup, along with these support and resistance levels, suggests that the bullish trend is still intact, with room for upside if the buying momentum continues.

Disclaimer

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