Tech Beat: Solana hits oversold level

April 15, 2024 (MLN): The fifth largest cryptocurrency, Solana (SOL), fell to a level seen as oversold on Saturday.

The digital token fell 9.6% on Saturday, taking its total weekly loss to 15.75%, which pushed its relative strength index (RSI), a widely tracked measure of momentum close to the level of 30 typically seen as oversold.

The 14-day RSI dropped to 31.2, the lowest in over 1.5 years.

In the previous 10 instances when the metric fell below 32, SOL climbed an average 35% over the next month, data compiled by Mettis Global show.

The rally has typically continued, with the token advancing 158% on average over the next three months and 513% over the next six months.

Cryptocurrencies, the only market open during the weekends, plunged following the latest events in the Middle East that took place over this weekend.

Bitcoin plunged as much as 10% below the previous close on Saturday, dropping to around $60,600, its sharpest selloff in more than a year.

However, the market displayed a remarkable recovery, with the largest cryptocurrency jumping 9.8% to $66,400 as of 12:50pm PST on Monday.

Solana (SOL) price has already shown a recovery rally along with the broader market.

Disclaimer: The views and analysis in this article are the opinions of the author and are for informational purposes only. It is not intended to be financial or investment advice and should not be the basis for making financial decisions.

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