The Solana price has jumped by 5% in the past 24 hours, with its surge to $20.30 coming as the wider cryptocurrency market rises by 1.4%.
SOL has now gained by 13% in the past week, with its recovery in the past few days coming as a correction to fears regarding the possibility of a major selloff of FTX's Solana holdings.
But with these holdings largely locked up for several years, and with SOL still down by 7% in the past month, the altcoin is likely to recover even further in the coming days and weeks.
Solana's indicators are in a prime position for a rebound, and that's just what the altcoin seems to be doing today.
Its relative strength index (purple) has bounced up from 30 a week ago to just over 50 today, signalling rising momentum and increased buying pressure, which can last until the RSI reaches 80 or 90.
At the same time, SOL's 30-day moving average (yellow) appears to have ceased its decline and to have flattened out, meaning that it could be about to begin a climb towards the coin's 200-day average (blue), something which would bring further price rises with it.
It's also encouraging to note that the SOL's support level (green) has risen substantially in the past few days, providing the altcoin with a stronger base from which to launch further charges.
Based on these indicators alone, it would seem that SOL is due further improvements, yet these have also been indicated by just how oversold the coin has been in recent weeks.
Indeed, the past couple of weeks brought fears that FTX may begin shedding its large holdings of SOL and Solana-based tokens, with the defunct exchange sitting on around $685 million in such tokens overall.
However, many commentators and analysts have rightly pointed out that the vast bulk of suchRead more on cryptonews.com