U.Today – The cryptocurrency has recently reached new notable levels and now its RSI (relative strength index) is showing a flattening effect on the top. This pattern is comparable to a double top pattern in conventional RSI analysis, in which the RSI reaches comparable high levels, twice forming a kind of top.
Double tops often indicate a possible reversal on conventional price charts, but in the case of the RSI they could actually reinforce the notion of trend continuation rather than reversal. The fact that Russia's RSI is currently in the 70-80 range indicates that the asset is slightly overbought but still holding firm. Historically, prolonged bullish periods, rather than sharp declines, have frequently accompanied Bitcoin's RSI rising above 70. The strong buying momentum is indicated by the fact that it remains at this level without experiencing a significant correction.
Recently, Bitcoin has broken above $75,000, a crucial psychological and technical barrier, and has broken through important resistance levels. Bitcoin has been on an uptrend from a price perspective, and the current price action indicates strong support. Bitcoin has a good chance of continuing to gain ground as long as it remains above $70,000. In line with previous consolidation areas, $69,000 is one of the support levels to watch. Fortunately, if Bitcoin maintains its current trend, it can reach $78,000 and even higher.
The notable volume that has accompanied this move has further reinforced the bullish sentiment. As noted recently, a high volume breakout usually indicates real interest rather than a passing bomb. Investors should watch any changes in volume trends as an indication of a change in sentiment.
The price recovers
Since prices have risen noticeably in recent days, Cardano is finally seeing a notable increase in its value. ADA has demonstrated such strong growth for the first time since February, breaking through multiple resistance levels and attracting investors' attention. The rise comes as bullish sentiment around the asset has been bolstered by ADA's move above the $0.40 mark, which saw it gain around 6% on the day.
ADA's ability to break above the $0.35 to $0.36 resistance zone, which had served as a recalcitrant barrier for months, is a major factor driving this rally. ADA was able to test higher levels after breaking through this zone, and this move has strong support due to increased volume.
Investor confidence is also likely to be boosted by the advancements of the Cardano network and its growing ecosystem. Technically, ADA has broken above its 50-day, 100-day, and 200-day moving averages, indicating the possibility of a long-term uptrend. Following recent improvements in macroeconomic sentiment, major assets are gaining ground and the current price action is in line with these broader market trends. But it is important to approach this expansion with a good dose of optimism.
Although ADA is showing positive indicators, the asset may be approaching overbought territory as its Relative Strength Index (RSI) has surpassed 70. This could result in a brief decline, giving investors the opportunity to consolidate their gains before a possible continuation of the uptrend.
ADA may attempt to test the next significant resistance level, which lies around $0.50, if it can hold the support above $0.40 and continue its upward trajectory. However, a drop below $0.40 could trigger a retest of support in the $0.35 range. ADA may finally be in the early phases of a broader recovery trend, based on Cardano price action, which is currently a positive development.
has returned
Solana (SOL) has broken the psychological barrier of $200 and if the momentum continues, it could pave the way towards an all-time high. A major achievement for the blockchain platform, which has witnessed a surge in network activity and popularity, particularly in the meme coin industry, this recent milestone indicates renewed bullish sentiment. An increase in on-chain activity is driving Solana's current rally by attracting more users and projects to the platform.
The burgeoning DeFi ecosystem, where SOL's fast transactions and affordable fees make it a desirable substitute for other networks, also supports this expansion. There is growing demand for SOL, supporting its price increase as more users engage with NFTs and app tokens on Solana as the platform grows. Technically speaking, reaching $200 creates a solid foundation for future upward moves.
SOL may aim for its all-time high around $260 if it breaks the next significant resistance level, which is located around $216. Holding this price could stimulate additional buying pressure and help the asset continue its uptrend. The $200 level currently serves as support.
The strength of this rally is also reflected in the Relative Strength Index (RSI), which has remained above the 70 mark, generally denoting strong buying interest. However, high RSI values should alert investors to any signs of overextension. For SOL to continue moving forward, continued volume growth and continued network activity will be essential.
This article was originally published on U.Today.
