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Solana (SOL) Price Nears Support: PumpFun Activity Hints at a Potential Surge

Author: Content Editor
Solana (SOL) price has dropped by 6% in the last 24 hours, leading investors to take notice. However, technical indicators such as the Relative Strength Index (RSI) suggest that SOL may be approaching oversold levels, indicating a potential trend reversal. The increased activity on Solana's major application, PumpFun, is a positive sign that could influence SOL's performance. The RSI currently stands at 34.82, significantly lower than its previous level of 70, indicating a shift in market sentiment from bullish to bearish. With the RSI nearing the oversold threshold of 30, it suggests that selling pressure could be diminishing, paving the way for buyers to step in. The resurgence in the number of tokens launched on PumpFun also indicates renewed user interest, which could have a positive impact on SOL's price. However, SOL's short-term Exponential Moving Average (EMA) lines are nearing a "death cross," suggesting a potential bearish momentum and price decline in the near future. If the negative trend continues, SOL's price could test support levels at $133 or even $110. On the other hand, if the RSI reaches the oversold stage and PumpFun continues to attract new coins, the trend could reverse, and SOL could retest the resistance level at $162, potentially gaining 13% from current prices.

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