The SOL/ETH pair trading on Binance looks overbought after four-month winning trend. Election 2024 coverage presented by
The solana-ether (SOL/ETH) pair has rallied over 15% since the start of October, continuing a three-month winning trend. However, the rally now appears overstretched.
The 14-day relative strength index (RSI) for SOL/ETH on Binance, an oscillator that measures the speed and change of price movements over two weeks, has surged above 70, indicating overbought conditions, according to charting platform TradingView.
The pair set a record high of 0.069 on Wednesday amid renewed strength in Solana's network activity.
An RSI above 70 does not necessarily indicate an end to the bull run, but rather that the recent upward movement has been strong and could be due for a bull breather or a temporary price correction. Potential support might be found at 0.064, the August high.
Some traders view an overbought RSI, especially on longer duration charts, as a sign of bullish solid momentum or evidence of the path of least resistance being on the higher side. As the adage goes, the RSI can stay overbought longer than bears can stay solvent.
The ratio between bitcoin's per-piece price and gold's per-ounce price has turned lower after failing to take out trendline resistance drawn off March and June highs.
The rejection, coupled with the negative crossover on the MACD, suggests continued BTC underperformance ahead. A similar setup in late July led to a protracted decline in the ratio.
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