The high-throughput blockchain’s SOL token has enjoyed an impressive bull rally over the last month. The tenth-largest cryptocurrency by market cap has gained more than 270% in market value, peaking at a new All time high at $133.
It is worth noting that the Relative Strength Index (RSI) suggests that Solana is trading at overbought conditions. More importantly, a bearish divergence appears to be developing between the rising prices and the declining RSI. For this reason, investors must pay close attention to the $78 support.
If Solana were to break through the $78 level, it could signal the beginning of a steep correction. Under such unique circumstances, SOL could dive towards $58.40, the level the asset topped out at in May. Slicing through this crucial demand barrier might see further downward pressure to $43.40.
